Apple's R&D spending tops 10% of revenue amid AI push

According to CNBC, Apple's (AAPL) research and development (R&D) spending in the March quarter reached 10.3% of its revenue, up from 7.6% in the previous quarter and 9% in the same period last year. While revenue increased by 17%, R&D expenditure grew by approximately 34% year-over-year, double the rate of sales growth. Gene Munster, Managing Partner at Deepwater Asset Management, said the move brings Apple closer to the ranks of other large technology companies, noting that the average R&D spending growth for Google, Microsoft, Meta, and Amazon was 29% this quarter. Munster stated that Apple is chasing other Big Tech firms in AI R&D, which he believes shows the company feels a sense of urgency to launch new AI products.