A fresh report from Apple’s headquarter is in the air that confirms the company’s investment in the research and development of its products, especially the Apple iPhone. It seems like the organization is learning from its past mistakes and now it is trying to figure out the reason for an enormous decrease in iPhone sales.
The third quarter of Apple’s financial year has shown an unexpected fall in the iPhone market. The R&D department is heard to be spending huge bucks to bring the product back on its feet. The recent fiscal year’s report has also exhibited spending of approximately $4.2 billion on research and development. In fact, such an immense budget was never planned or spent before in Apple’s history. However, despite investing tremendous funds in the unit, the iPhone still didn’t last to the “star” position. Unfortunately, this has been more of a shock to the company.
Nevertheless, the leader is still in hopes of shifting their product to the level of a “cash cow” and through CNBC’s report, it is also revealed that the company might spend roughly $16 billion on R&D in 2019. A few days earlier, Apple has announced the launching of two iPad models along with a 16-inch Mac Book Pro that includes a new style keyboard. Also, gossips about the release of another iPhone model are airborne.
The reduction in iPhone demand in the third quarter is still unexplained by the company. But one thing that elucidates the cause is the insufficient budget for research and development. $4.2bn or 7% out of total Apple’s revenue of the third quarter is definitely a gigantic amount to be spent for exploring new ways to satisfy iPhone users. But on the other hand, companies like Microsoft and Google have invested 13.4% and 15.7% of their revenue in the same area.
So no wonder why they are still being admired by their users because they are bringing out new features in their products for the ease of their consumers, while Apple is on its way.
Recently, the glitch in iPhone and secret registration of voice recordings by Siri have ill-reputed the company. Moreover, the customer agreement of Apple Card on banning purchases of cryptocurrencies and cash advances services seems unappealing to the customers. Hence Apple needs thorough research and amendments in their strategies to gain back customer’s confidence in iPhone.