Apple explains why its R&D spending is on the rise – CNBC

Apple has credited special camera sensors in the iPhone 7 Plus, and special chips in its AirPods, for their superior performance. These new products come amid tenuous relationships with chip supplier Qualcomm, who is battling Apple over the royalty costs of chips.

On Tuesday, Maestri also noted that Apple’s “product portfolio is much larger than it used to be,” and that keeping all these products moving along in parallel adds up, especially with smaller markets, like the Apple Watch.

While Maestri said Apple drops a “meaningful” amount of cash on products that do not generate revenue today, these products are not very large “in the total scheme of things,” Maestri said.

“They add up over time, and hopefully, those are good bets that we are making for the future of the company,” Maestri said.

Maestri also reiterated Apple’s support for a lower tax on repatriation of funds kept overseas, which is under consideration by the Trump administration and Republican Congress, and opposition to Trump’s proposal of a border tax, saying “it would burden the consumer and the dollar would appreciate versus where it is today, which is already too strong.”

The conference draws tech’s heavy hitters, such as Oracle CEO Mark Hurd, to discuss the future of their companies. Maestri’s comments come after Apple reported better-than-expected earnings in January, helped by a more expensive iPhone and new MacBooks.


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