APPLE R&D SPENDING HITS 30-YEAR HIGH AT 10.3% OF REVENUE

Apple's R&D expenditure jumped to 10.3% of revenue in Q2, up sharply from 7.6% in Q1 and 9% in the same quarter last year. The spending increase outpaced revenue growth, with R&D climbing 34% year-over-year while total revenue rose 17%. The aggressive investment marks a significant shift for Apple, which has historically maintained leaner R&D budgets relative to competitors. The timing aligns with accelerating competition in AI development across the tech sector. Despite the elevated spending, Apple maintained strong financial performance. Q2 revenue growth of 17% year-over-year suggests the company is successfully monetizing its existing products while simultaneously building future capabilities. Analysts view the R&D increase as Apple's response to maintaining competitiveness in AI-driven innovation. The company has yet to detail specific projects consuming these resources, though previous announcements indicate focus on on-device AI features and integration across its ecosystem.