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Old Jul 23, 2014, 10:40 AM   #1
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Apple's 36% Boost in Research and Development Spending Points to Strong Product Pipeline




Apple made a significant investment into research and development this past quarter, increasing spending in the category by 36 percent over the same quarter last year, reports Financial Times. As noted by BTIG Research analyst Walt Piecyk, Apple's $1.6 billion quarterly investment represents 4 percent of sales, the highest percentage of spending in R&D since 2006, the year before Apple released the first iPhone.

This huge increase supports rumors the company is investing significantly in more than just new iPhones, iPads, and Macs for its upcoming product pipeline. Apple CEO Tim Cook has repeatedly confirmed the company is preparing to enter new product categories, with Cook saying Apple is working "really great stuff." Apple's Internet Software and Services chief Eddy Cue also enthusiastically noted that Apple's planned products for 2014 are "the best product pipeline that I've seen in my 25 years at Apple."

iWatch concept by Todd Hamilton
The highlight of these new products is likely the iWatch, a fitness-oriented smartwatch rumored for release later this year. The sensor-laden wearable device is expected to sync with the iPhone including via a new Health app for iOS 8 and may monitor vital health parameters such as blood pressure, oxygen levels and hydration status. A recently awarded patent hints at some of the advanced connectivity features Apple could embed into the device in future iterations.

Over the past several years, Apple has been hiring a number of medical and wearables experts, presumably to work on the iWatch team. Apple has also been pursuing hires from the fashion industry including former Yves Saint Laurent CEO Paul Deneve and former sales director of luxury watch company TAG Heuer Patrick Pruniaux. New retail chief Angela Ahrendts also comes from the fashion industry, having served as CEO of Burberry.

Article Link: Apple's 36% Boost in Research and Development Spending Points to Strong Product Pipeline
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Old Jul 23, 2014, 10:41 AM   #2
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Eddy Cue also enthusiastically noted that Apple's planned products for 2014 are "the best product pipeline that I've seen in my 25 years at Apple."
Someone at Apple says that every year. Usually right after earnings come out!
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Old Jul 23, 2014, 10:41 AM   #3
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Only good things will come from this, this is wonderful news.
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Old Jul 23, 2014, 10:42 AM   #4
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this thing is going to be fantastic.
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Old Jul 23, 2014, 10:42 AM   #5
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Can we PLEASE remove the javascript loading from MacRumors? This website used to be fast to load, now it even froze Safari for a good 15 seconds before I could do anything.
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Old Jul 23, 2014, 10:43 AM   #6
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Y'all keep fixating on HealthKit being the big tie-in to the rumored iWatch, but I maintain the bigger selling point in the long run will likely be HomeKit integration, allowing you ready and easy control for your connected house at all times, even if you aren't at your computer or already holding your phone/tablet.
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Old Jul 23, 2014, 10:44 AM   #7
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Big bet on IWatch. I won't own one.
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Old Jul 23, 2014, 10:44 AM   #8
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I'm literally watching the days count down. I am ready to spend some money.
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Old Jul 23, 2014, 10:46 AM   #9
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Super Mario had strong pipelines.
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Old Jul 23, 2014, 10:47 AM   #10
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The highlight of these new products is likely the iWatch
Perhaps. This is obviously the most rumored item. But there is still a potential TV, homekit product, and who knows what else. If the pipeline really is that great, I wouldn't be too surprised to see 2 or maybe even 3 new product categories over the next year and a half. The iWatch could turn out to be one of the lesser important ones.
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Old Jul 23, 2014, 10:48 AM   #11
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I think it's time to take Tim's words seriously. He seems to be the kind of guy that is as serious as Steve was.
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Old Jul 23, 2014, 10:48 AM   #12
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Someone at Apple says that every year. Usually right after earnings come out!
Yea that sounds way too familiar.
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Old Jul 23, 2014, 10:48 AM   #13
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Y'all keep fixating on HealthKit being the big tie-in to the rumored iWatch, but I maintain the bigger selling point in the long run will likely be HomeKit integration, allowing you ready and easy control for your connected house at all times, even if you aren't at your computer or already holding your phone/tablet.
I agree!!

Of course the world is excited to see what an iWatch can do; however, we all know that Home Automation is next big thing to come from commercial.

In regards to the "best product pipeline over the last 25 years" quote, i really hope that Eddie isn't just referencing larger iphones and thinnger ipads...
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Old Jul 23, 2014, 10:49 AM   #14
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Someone at Apple says that every year. Usually right after earnings come out!
Proof please.
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Old Jul 23, 2014, 10:49 AM   #15
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Apple has 1 product in the pipeline at best.
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Old Jul 23, 2014, 10:50 AM   #16
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Apple has 1 product in the pipeline at best.
So what are they spending all this money on then?
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Old Jul 23, 2014, 10:53 AM   #17
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Y'all keep fixating on HealthKit being the big tie-in to the rumored iWatch, but I maintain the bigger selling point in the long run will likely be HomeKit integration, allowing you ready and easy control for your connected house at all times, even if you aren't at your computer or already holding your phone/tablet.
Nah, health is the big thing now. Trackers are an exploding market currently.
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Old Jul 23, 2014, 10:54 AM   #18
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So what are they spending all this money on then?
iPhone & iPad tech and their reiterations. Camera tech, liquid metal tech, display tech, and a bunch of products that won't see the light of day. Something tells me alot of it is re-working their software (ie Photos) such as iWork that was rewritten from the ground up to have the same code base on iOS and OS X and iCloud OS (this will be Apple's 3rd OS).

It's very un-Apple to have that many products to be released. They are very careful what they pick to launch. I have my doubts about iTime/iWatch. Doesn't seem like a mass market product and definitely a niche product.
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Old Jul 23, 2014, 10:55 AM   #19
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This is good news for future products; would love to see an updated Apple TV. Note: I don't need a full TV, an updated "box" is great (and maybe preferred for me)
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Old Jul 23, 2014, 10:58 AM   #20
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Apple, please bring us more innovative products. More spending on R&D is good.
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Old Jul 23, 2014, 10:58 AM   #21
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Originally Posted by Lord Hamsa View Post
Y'all keep fixating on HealthKit being the big tie-in to the rumored iWatch, but I maintain the bigger selling point in the long run will likely be HomeKit integration, allowing you ready and easy control for your connected house at all times, even if you aren't at your computer or already holding your phone/tablet.
Umm, sorry to tell you but the entire point of the wearable is biometrics. It's a wearable, which means it's always literally attached to your body, which means it's function, above all else, will be biometrics. Granted it will do plenty of other things, including home automation probably, but you don't make a product that can do what another product in your pocket can already do better. Yes, it's convenient and quick for certain things as opposed to having to always pull out your phone, but anyone with decent intelligence knows that the reason this was made is for numerous biosensors reading your body.
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Old Jul 23, 2014, 10:58 AM   #22
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This is good news for future products; would love to see an updated Apple TV. Note: I don't need a full TV, an updated "box" is great (and maybe preferred for me)
Seconded. Would love to see an aTV update and am also waiting for a new Mac Mini.
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Old Jul 23, 2014, 10:59 AM   #23
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More stuff in the pipeline, huh? You don't say? So push it out there.
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Old Jul 23, 2014, 10:59 AM   #24
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Big bet on IWatch. I won't own one.
Many people don't want smartphones, the world goes on.
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Old Jul 23, 2014, 11:00 AM   #25
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Probably the iWatch. I don't really see the point of one, but I said that about the iPad too. We'll see.
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