Apple's Research and Development
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How should Apple increase investment in research and development? Or What steps should the company take when considering to increase in R&D?
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Solution Summary
This solution of 902 words explains how Apple could increase its investment in research and development by specific suggestions to their line of products, focusing on their scientific division, and diversifying their portfolio.
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There are many ways that Apple could increase its investment in research and development (R&D), including redeveloping its famous iPod brand to give consumers more of what they want. The iPod is one of the top music players on the market. Without considering the potential success of the iPhone, the iPod has cornered the market and could be even better if they research and develop what their customers want. They could even offer personalized iPods (i.e. preferred colors, stripes, logos and partnerships with firms such as Harley Davidson, or other themes that consumers could personalize).
Research shows that Apple company has not spent much on R&D; as a portion of overall sales, their expenses have actually fallen by more than half. Apple spokeswoman Natalie Kerris didn't know whether the company had set goals for R&D spending. Though analysts generally praise Apple for its frugality, some warn there's a limit to how much longer the company can squeeze juicier near-term profits out of its R&D line. "Ultimately, for them to sustain their growth and be successful in the long term, they're going to have to move in new directions and tackle some new product lines that they don't have and haven't historically done," says Van Baker, an analyst who covers the company for industry research group.
Research shows that although there's no hard-and-fast rule for what ...
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