Apple's R&D Spending Surges Amid AI Development Push

Apple Inc. (AAPL.O) reported that its research and development (R&D) spending accounted for 10.3% of its revenue in the March quarter, according to CNBC. This marks an increase from 7.6% in the previous quarter and 9% in the same period last year. Despite a 17% rise in sales, the growth rate of R&D spending was nearly double, increasing by approximately 34% compared to the previous year. Gene Munster, managing partner at Deepwater Asset Management, noted that this move positions Apple closer to the ranks of major tech companies. He highlighted that Google, Microsoft, Meta, and Amazon saw an average year-on-year increase of 29% in R&D spending this quarter. Munster stated, "In AI research and development, Apple is catching up with other major tech firms. This indicates a sense of urgency for Apple in launching new AI products."