Apple underinvesting in innovation, Bernstein's Sacconaghi says

July 15, 2018

"While Apple's current R&D spending is large, our benchmarking analysis suggests that Apple appears to still be underspending on R&D today, perhaps by a factor of 2x," he writes. Combined with Apple spending much less on mergers and acquisitions--just 2% of its free cash flow versus an average for its peers of 25%--it suggests to Sacconaghi that “Apple may be ‘underinvesting’ in innovation."