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Apple R&D Spending on Track to Top Record $10 Billion Amid Electric Car Rumors

Posted on 5/12/16 at 1:07 pm
Posted by Street Hawk
Member since Nov 2014
3459 posts
Posted on 5/12/16 at 1:07 pm
quote:

Apple analyst Neil Cybart of Above Avalon notes that Apple is now on track to spend a record $10 billion on research and development this year, up nearly 30 percent from 2015 and significantly more than the little over $3 billion per year it was spending on R&D just four years ago.

Cybart believes that the most likely explanation for Apple's increased R&D spending is that the company is looking to make a long-term pivot beyond the iPhone, which currently accounts for nearly two-thirds of the company's revenue. His predicted product of the future: the widely rumored Apple Car.

"Apple is not spending $10 billion on R&D just to come up with new Watch bands, larger iPads, or a video streaming service," he wrote. "Instead, Apple is planning on something much bigger: a pivot into the automobile industry."





LINK

Posted by Grits N Shrimp
Kansas City, MO
Member since Dec 2014
646 posts
Posted on 5/12/16 at 1:22 pm to
In at $90.23
Posted by dabigfella
Member since Mar 2016
6687 posts
Posted on 5/12/16 at 1:29 pm to
i dont know why the market hates it, just stay the course, it may not be a growth stock but its a dividend growth stock now and thats fine, ill take it, im looking for safety when deploying capital. I make plenty of money at work, i just want to know what I invest in is going to be solid.
Posted by Grits N Shrimp
Kansas City, MO
Member since Dec 2014
646 posts
Posted on 5/12/16 at 1:34 pm to
Sorry to hijack - BigFella, look at Archer Daniels Midland. Commodities have been hammered and their dividend is over 3% for the first time in 8 years. 40+ years of dividend growth and still below 50% payout ratio.
Posted by dabigfella
Member since Mar 2016
6687 posts
Posted on 5/12/16 at 2:50 pm to
very nice grits and shrimp PM finally crossed $100 recently
Posted by SG_Geaux
1 Post
Member since Aug 2004
77929 posts
Posted on 5/12/16 at 3:43 pm to
That's what we need. A car locked in to iCloud.
Posted by AUFanInSoCal
Orange County
Member since Nov 2007
1616 posts
Posted on 5/12/16 at 4:12 pm to
quote:

Amid Electric Car Rumors


Think bigger Apple. Instead of an electric car, How about a flying car for under 30K
Posted by thatguy777
br
Member since Feb 2007
2384 posts
Posted on 5/12/16 at 9:42 pm to
(Reuters) - Apple Inc (AAPL.O) said on Thursday it has invested $1 billion in Chinese ride-hailing service Didi Chuxing, a move that Apple Chief Executive Tim Cook said would help the company better understand the critical Chinese market.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51474 posts
Posted on 5/12/16 at 10:59 pm to
quote:

Apple R&D Spending on Track to Top Record $10 Billion Amid Electric Car Rumors


Electric (not hybrid, but fully electric) cars have been poor sellers due to crappy range and insanely high price tags. Musk has shite all over those impediments with the 3 supposed to be around $35k and get ~215 miles on a full charge.

If Apple introduces an electric car, it's going to have to do more than just be a Tesla 3 clone with an Apple logo.
Posted by LSUShock
Kansas
Member since Jun 2014
4913 posts
Posted on 5/12/16 at 11:13 pm to
quote:

I make plenty of money at work


People who preface their logic with this statement, tend to not "make plenty of money at work".
Posted by Sho Nuff
Oahu
Member since Feb 2009
11900 posts
Posted on 5/13/16 at 12:31 am to
quote:

In at $90.23

I bought some more today at the exact same price
Posted by Omada
Member since Jun 2015
695 posts
Posted on 5/13/16 at 7:45 am to
quote:

People who preface their logic with this statement, tend to not "make plenty of money at work".

dabigfella has said in past posts that he owns multiple gas stations and the attached convenience stores. He also said that finding good employees is a/the major reason that slows his expansion. Unless he's lying (which is easy to do on anonymous message boards, but I'm skeptical that this is the case), I think he's doing okay.

Sorry for hijack.
Posted by 50_Tiger
Dallas TX
Member since Jan 2016
39977 posts
Posted on 5/13/16 at 8:15 am to
This stock gonna blow chunks or give blow.... im not sure right now. Im hoping apple makes a move to improve their portfolio otherwise a lot of naysayers will start beating their chests that the company was all Steve Jobs.
Posted by dabigfella
Member since Mar 2016
6687 posts
Posted on 5/13/16 at 2:43 pm to
quote:

People who preface their logic with this statement, tend to not "make plenty of money at work".


Believe me when I say I make plenty at work. What I mean is, my portfolio is not a place I go to hit grand slams. I dont invest in small caps, I simply try to invest safe and steady, those who know me know Im balls deep in PM,MO,and V and have been for years and all 3 are up enormously from when I purchased. I currently have all the safe dividend income I sought and have recently been adding Apple,Facebook, and Google in my monthly purchases even though they dont pay big dividends bc I want safety and growth with the money I currently am adding. Im not investing in stone energy or other small caps looking to get rich, thats all I meant, I dont see where you would assume anything about my income from it.
Posted by Cold Cous Cous
Bucktown, La.
Member since Oct 2003
15043 posts
Posted on 5/13/16 at 3:10 pm to
Holy shite at the amount of $ they dumped into the apple watch. How could that possibly have been more expensive than everything else they built before it, combined?
Posted by Sho Nuff
Oahu
Member since Feb 2009
11900 posts
Posted on 5/13/16 at 11:09 pm to
From 2014 to 2015 they went up $2 billion in R&D and I doubt all of that was just for the iWatch.
Posted by baldona
Florida
Member since Feb 2016
20391 posts
Posted on 5/14/16 at 11:47 pm to
They also have a lot to spend, more than ever and that's percentage wise too. They have never been a big dividend company, they were way over due to either make a big purchase of another company which hasn't been their style like say google or to dump a ton of money on a new project.
Posted by GFunk
Denham Springs
Member since Feb 2011
14966 posts
Posted on 5/15/16 at 8:29 am to
Keep in mind they have spent enormous sums on the Apple TV revamp, the on again off again Televsision CDN/cable alternative/cord cutting offering, expanded their iCloud system, and also continues to develop their current line. Along with all that they're also jumping into autonomous and EV.

A lot of it has to do with the automobile-and I think Jony Ive loved the idea of designing lux/vanity products/objects at this stage of his career-but Apple isn't solely focused on that just yet.
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