Apple is spending $30 billion a year on R&D to find its next big thing

If the prospect of a slightly better iPhone, with a slightly better camera, that is slightly more expensive than you want it to be doesn’t have you jumping up with excitement, rest assured you’re not alone. Consumers are holding onto their phones longer: in 2015 just 6% of iOS users reported having their phone for 3+ years, a figure that had soared to 31% this year, per data from CIRP. And with every passing year, hype for the latest iPhone seems to diminish. 

Apple execs are, of course, acutely aware of its dependence on both the iPhone and its suppliers. Indeed, in recent years the company has made a number of significant investments in its own tech. It now makes its own chips, ending a decades-long reliance on third-parties like Intel, and it’s spending more on Research & Development — some $30 billion last year. Interestingly, that’s not just more in absolute dollars, but also as a proportion of its revenue, reversing a roughly 10-year spell when the company cut its R&D budget in relative terms.

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