MULTIMEDIA

R&D Spending Hike Points To New Products At Apple (Part 1)

9/15/2014 11:14:45 AM

iWatch and several new iPhones anticipated

In-between the major launches by companies like Apple and Samsung that get us excited so much, there are various established ways of getting a sense of what may be coming as far as new products and software are concerned in the next few months and years.

You may look to the rumours pages, for example, where there will invariably be references to oblique "sources familiar with the situation", suggesting that the next iPhone, iPad or other Apple product will have "this" feature or "that" feature. There may also be mentions on these websites of supply chain leaks, or someone on an Internet forum may have come up with all manner of outlandish ideas of features that the next iPhone is "sure" to have.

The iWatch will have a 2.5-inch rectangular screen, and it will be out in October.

The iWatch will have a 2.5-inch rectangular screen, and it will be out in October.

Some of these sources of the latest 'news' will, of course, simply be emitting a lot of nothingness. Others may be much more on target, but if there's anything that indicates that something is definitely "up" at a given technology company, it is surely significantly increased research and development (R&D) spending. Sure enough, that's exactly what turned up in Apple's second quarter results filing.

The significance of the latest Apple figures

To be more specific, the quarter saw 36 per cent greater R&D expenditure than the previous year. The $1.6bn spent in this area by the Cupertino giant in the three months to June accounted for 4 per cent of sales, which as BTIG Research analyst Walt Piecyk has observed, is the highest ratio since 2006, when Apple was readying the first iPhone.

That might be a strong indication on its own that Apple is up to something, but when teamed with certain other longstanding chatter, it suggests that we're in for something very big indeed. It's well-documented that the Californian firm hasn't debuted a true new product since 2010's iPad, having offered mere incremental updates of existing favourites for the first few years after one-time CEO Steve Jobs' death.

A new report from Korean source Naver has reaffirmed that LG will be the sole supplier of the flexible display panels required for the rumored Apple iWatch.


 

A new report from Korean source Naver has reaffirmed that LG will be the sole supplier of the flexible display panels required for the rumored Apple iWatch.

But since as long ago as late 2012, we've been hearing talk about an 'iWatch', Apple's long-awaited entry into the emerging mobile tech wearables market. Sources mentioned by the Financial Times and others suggest that Apple's big new release this year is indeed a wearable device with fitness tracking and tethered smartphone remote control capabilities.

Other pointers to a new Apple product

There's lots more evidence that, far from another false dawn, this autumn really is the time when Apple's next blockbuster product will break cover. Just look back to current CEO Tim Cook's repeated confirmations that the firm is set to enter new product categories, or even the enthusiastic proclamation by Apple's Internet Software and Services chief Eddy Cue of 2014 featuring "the best product pipeline that I've seen in my 25 years at Apple." Alternatively, consider the fact that Apple's highest-profile recruits in recent times include many medical and wearables experts, from the one-time TAG Heuer sales director Patrick Pruniaux to erstwhile Yves Saint Laurent CEO Paul Deneve. The by now well-publicized presence in iOS 8 of a new dedicated Health app also corresponds neatly with the iWatch's rumoured health-related functionalities, with the device said to use 10 different sensors to gather health and fitness information that is then displayed in the app.

But will the new device even be known as the '¡Watch' when it finally sees the light of day? Sources have said that despite Apple filing to trademark the term last year, it's actually an unlikely moniker for the new wearable, with 'iTime' surely another possibility given that this was the name given to an "electronic waistband" for which the Cupertino firm has just been granted a patent.

In addition to featuring a flexible display, the iWatch is also expected to sport a wide array of sensors to track pulse rate and several other health related parameters.

In addition to featuring a flexible display, the iWatch is also expected to sport a wide array of sensors to track pulse rate and several other health related parameters.

Innovation: Apple's greatest asset

But what if we stop to ask ourselves... what is it about Apple that even has us so glued to those aforementioned rumour pages, all year round, but especially in the run-up to its traditional new iPhone announcement each year? There are many things that we could cite, but above all else, it has to be innovation - as demonstrated by a run of game-changing iDevices released under the auspices of the mercurial Jobs.

Whether his successor can continue that run has been the subject of much talk - particularly among investors, who Cook moved to reassure in February with his declaration that Apple was working on "really great stuff" and remained a "growth company", not merely one looking to maintain its footing in its established phone, tablet and computer product categories.

 

 

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