Secret microLED labs, Apple R&D, and the future of product margins

Secret microLED labs, Apple R&D, and the future of product margins

By Danny Crichton

Over the weekend, Mark Gurman at Bloomberg reported that Apple has apparently built out a microLED display laboratory in California for testing and manufacturing small batches of the next-generation screen technology, presumably for its iPhone and other devices. Apple had previously acquired microLED startup LuxVue in 2014.

The news of a secret research lab fits into a larger narrative about Apple’s deeper and more expensive focus on research and development. Neil Cybart of Above Avalon, a subscription blog focused on Apple, noted that Apple “is on track to spend $14 billion on R&D in FY2018, nearly double the amount spent on R&D just four years ago” and also pointed out that “The $14 billion of R&D expense that Apple will spend in FY2018 will be more than the amount Apple spent on R&D from 1998 to 2011.”

Those are incredible numbers for any company, but the scale of the R&D output even for Apple is exceptional. Even more notably, Apple’s R&D expenses as a percentage of revenue have been steadily increasing over the past few years and are projected to reach a decade high of 5.3% this year despite higher revenues, according to Cybart.

That …read more

Source:: TechCrunch Gadgets

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