Apple spent almost $100 billion innovating its products over the last 5 years

Apple (NASDAQ: AAPL) has for years sustained its position among the top tech companies serving a wide range of customers through innovative products and services that seem to meet emerging market demands. At the center of these products is the company’s research and development segment, that’s recording a steady increase in budget allocations.

In particular, data acquired and calculated by Finbold on December 8 indicates that between 2018 and 2022, Apple spent $97.37 billion on Research and Development (R&D). Between the five years, Apple’s spending on the segment surged 84.33% from 2018’s $14.24 billion to 2022’s $26.25 billion.

Indeed, spending on research and development has been growing steadily in recent years. In 2019, the value stood at $16.22 billion, growing by over 15% to 2020’s $18.75 billion. In 2021, the spending surpassed the $20 billion market for the first to hit $21.91 billion.

Apple R&D spending increases despite the economic downturn

The research acknowledged Apple’s continued focus on the research and development sector despite the prevailing market conditions. According to the research report:

“Notably, 2022 spending has risen despite the economy remaining depressed, characterized by high inflation and the threat of interest rate hikes. Furthermore, Apple is set to continue to incur losses over its decision to exit the Russian market following the country’s invasion of Ukraine. Together these factors have resulted in Apple’s stock faltering in line with the general market as the firm implements strategies to sustain its business amid the challenging times.”

It is worth noting that Apple’s spending on innovations does not guarantee the company’s success. However, the company will likely justify the budget allocation if the products and services are well received in the marketplace.