Is Apple's R&D Department The Uncrowned King Of The Tech World?

Apple does not really spend huge amounts on research and development but creates demand of its product.

Apple Inc. is said to be a tech giant that has a fairly innovative trajectory in the tech world. The company has a wide variety of products and service that encompass various devices from smartwatches to smartphones. The question here arises so as to how the company succeeds to retain its position in this evolving market considering the fact that relatively high amount is spent on research and development per annum. Apple products are well known in the industry for their innovative functionality and designed, thus the device being priced heftily comes as no surprise.

Apple is a competitor to several companies in the smartphone world where Samsung Electronics Co. is one of those companies that is the core rival of Apple Inc. the company also has a top notch operating which is also said to be a big threat to Google Inc.’s open sourced Android OS. The company has now taken a new path where it has started to develop smartwatches in order to further dent the monopoly of Android bases wearable tech industry. The company is known to be relatively spendthrift when it comes to dealing with competition right, left and center.

The company has already spent millions of dollar in research and development. However, they fall relatively short when comparing the amount of money that us being spent by rivals. The company claims that they have already spent $7.1 billion in terms of research and development, this is extremely less than Samsung or Google that have spent $12.6 billion and $10.5 billion over the same time span .

So now it is extremely clear that Apple is not really spending as much as others perceive that it is investing. So now the question is how the company has succeeded in meeting the user expectations. The reason is fairly simple; the company has showed several ways which depict their ability to publicize products in an exceptional manner that users actually crave for their products. They do not really act in a way that fulfills the consumer demand, but they have the potential to create the demand of their products by positioning them in a way that makes users demand them.

So this actually means that those companies who spend a relatively high amount on research and development do not really mean that they have the potential to do well or innovate more. This means that new startups need to focus on the product more than R&D, but every company designs its own strategy in a manner that changes the game for them.