Apple Ramps Up R&D Spending to Record Highs, Hinting at Future Innovations While Widening Competitive Moat
• Apple spent $30B on R&D in 2023, the highest percentage of revenue in 20 years, hinting at major new innovations • Investments are going toward silicon chips, AI, machine learning, Vision Pro headset, and unnamed future products • These won't necessarily create new revolutionary devices, but widen Apple's competitive moat and increase profits • Margins and services revenue hitting records, services makes up 22% of sales but growing much faster • Management focusing on brand, user experience to drive services growth, profits, dividends over long term