From PC Mag: Apple's Q3 earnings came with good news and bad news. The tech giant's services segment continues to grow steadily and helped buoy Apple's overall revenue growth, but profits dipped more than 12 percent amid declining iPhone sales.
Though Apple's services, wearables, and accessories products are still showing healthy growth, the iPhone has been its cash cow for a decade. As the smartphone market stalls and iPhone sales stagnate, Apple needs a breakthrough technological innovation the likes of which we haven't seen much of during the Tim Cook era. And the company knows it.
So it's not surprising that Apple spent a higher percentage of its total sales revenue in Q3 on research and development than it had in any quarter since before the launch of the iPhone. The company spent $4.26 billion on R&D in Q3, or 7.9 percent of its total sales. Overall, Apple has allotted 6.2 percent of its 2019 sales revenue to R&D, its highest percentage since 2003.
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