I'm not a financial person, so if someone could explain this to me, I'd appreciate it.
If I'm reading this correctly, it says that 4% of the money that Apple brings in the door from selling its products and services (sales) is for research and development.
Research is, well, research.
Development is, I assume, the process of developing a product, from concept to the start of production.
I assume the costs of development are the costs of the engineering departments (salaries, secretaries, etc.), the desks that they sit at, the equipment used to develop the product, etc., etc., etc. I assume that 80-90% of all of those campuses filled with engineers are expensed under the R&D line-item.
So, what does Apple spend 96% of its sales on if only 4% is spent on developing new products?
Yeah, the stores cost money, and the iCloud cost money, and marketing costs money, and administration costs money, and then there is the cost of actually producing each product.
But 4% sounds like a small number for what, I believe, is the most important part of their business.
Are there MBAs out there who can explain this to me?