Apple’s R&D spending climbs to 10% of revenue on AI investments
Apple’s R&D spending climbs to 10% of revenue on AI investments
Publish Date: 2026-05-06 08:00:00
Source Domain: www.cnbc.com
Apple CEO Tim Cook gestures as he departs after a business leaders reception with the U.S. president on the sidelines of the World Economic Forum annual meeting in Davos on Jan. 21, 2026.
Fabrice Coffrini | Afp | Getty Images
For the first time in at least 30 years, Apple is spending more than 10 cents of every dollar it brings in on research and development, one of the strongest signs yet that the iPhone maker is dedicating big money to its artificial intelligence ambitions.
Apple’s R&D spending hit 10.3% of revenue in the March quarter, up from 7.6% in the prior period and 9% in the same quarter a year earlier. And while sales jumped 17%, the fastest rate of growth for any quarter since 2021, R&D climbed twice as quickly, increasing almost 34% from a year prior.
With CEO Tim Cook preparing to step down following a 15-year run at the helm, he’s finally putting the kind of muscle into AI that investors have been seeking since OpenAI kicked off the generative AI boom in late 2022. Gene Munster, managing partner at Deepwater Asset Management, said Apple’s push puts it closer to the hyperscalers, noting that across Google, Microsoft, Meta and Amazon, the average year-over-year R&D increase for the quarter was 29%
“Apple is catching up to the other mega-tech companies when it comes to R&D for AI,” Munster said. “That’s a sign that Apple is seeing a sense of urgency around new AI products.”
In reporting results that topped analysts’ estimates and boosting its revenue forecast last week, Apple’s main talking points during earnings centered on surging demand for iPhones and Macs and the global memory crunch caused by insatiable demand for AI infrastructure.
But the R&D increase got some attention from Cook, who will be turning over the top job to longtime hardware boss John Ternus in September.
“We are clearly investing more,” Cook said on the call. He noted R&D is “accelerating much higher than the company is,” and that Apple is “investing in products and…
