Apple Plans To Increase Its R&D Spending By $1.5 Billion; Possibly For Its Electric Car Project

Apple is in plans to increase its research and development (R&D) spending by $1.5 billion this year, as per a Securities and Exchange Commission (SEC) filing. Meanwhile, the Cupertino based tech giant is also planning to cut back on its capital expenditure. As a result, by end of September, the R&D budget will increase 34 percent to $5.9 billion, according to reports.

According to a report on Bidness Etc, there are few reasons behind axing the capex budget. In the last fiscal year, the tech giant had launched the iPhone 6 and iPhone 6 Plus and it also launched the Apple Watch into some markets. Taking cognizance of these initiatives, it could be possible that now the company’s major capital expenditure would be on enhancing these products’ software and upgrading their hardware in the form of an iPhone 6S and iPhone 6S Plus and an updated operating system for the Watch. However, it still remains unknown, whether Apple is in plans to introduce the second iteration of the Apple Watch.

The increase in R&D spend hints at the company’s plans to invest on other innovative ideas. Chances of the increased R&D spend going to the company’s electric car project seems to be higher. The company has already expressed its intention to introduce its electric car in the next five years. Apple has been hiring experienced candidates to join its electric car project.

Recently, the Cupertino based tech giant has hired Doug Betts, who previously served as the head of global quality at Fiat Chrysler Automobiles. According to a Wall Street Journal report, Apple had hired former Ford executive Steve Zadesky to lead the Apple’s electric car project, codenamed ‘Titan’ and recently, the company also got self-driving car researcher, Paul Furgale on board.

Besides Apple, Google is also working towards making its way to the auto sector. It is currently testing its “Self Driving Cars” and finetuning it before presenting it to the general masses. Mobile ride hailing app company, Uber too, plans to enter the self driving car space.

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