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Apple spending on research and development in 2016 reached a record $10 billion

Against the background of lower demand for premium smartphones in the global market experts suggest that Apple may focus on its services with the aim to overcome the slowdown. Resource Dailycomm found evidence that in stock at the iPhone maker has much grander plans.

As claims analyst Neil Seibert from Above Avalon, in 2016, Apple plans to spend on research and development, a record sum of $10 billion Is almost a third more than last year’s budget and Apple is much higher than the figures from four years ago, when an American Corporation has spent for these purposes about $3 billion a year.

According to observers, a significant increase in spending on research and development work associated with the intention of Apple to make a radical u-turn from the production of the iPhone, which today bring Apple nearly two thirds of its revenue. The expert predicts that the product of the future for Apple will be the Apple Car electric vehicle, the output of which is rumored, could take place in 2020.

“Apple is going to spend $10 billion on R&D in order to release the next bracelets for their smart watch, create a new larger model of the iPad or video streaming service. Apple is preparing something much more significant – a reversal in the automotive industry”, – wrote the expert.

Apple began to increase R&D investment since mid-2014, and Seibert believes that this is directly related to the development of the Apple Car. The expert notes that a similar increase was noted before the release of iconic products of the company – iPhone, iPad, and Apple Watch.

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According to analyst, Apple has already spent several billion dollars on the project Titan. It is expected that by the year 2017-2018 the sum of R&D costs will reach at least $14 billion, Neil Seibert argues that the likelihood of the Apple electric car is not less than 80%.

“My confidence is a simple explanation: Project Titan is a turn designed for the long term. I don’t think Titan is similar to the other projects related to the Apple TV or the Apple Pencil, over which laboratory work for many years. Project Titan needs to be the new Foundation of Apple, representing the future of the company”, – said the expert.

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