Greg's bite: the secret to Apple's lower R&D budget is focus

Greg's bite: the secret to Apple's lower R&D budget is focus

By Greg Mills

As an inventor and R&D guy myself, it comes as no surprise to me that Apple is spending far less for its research than it's competitors. We ran an article yesterday with numbers that
put Apple's R&D expenditures at one-seventh that of Microsoft with similar market caps between the companies.  

Look at what is coming out of the two companies and you wonder how Microsoft is blowing so much money. The truth is that Apple is just innovating better at a low cost, not that Microsoft is wasting so much more than typical companies their size.

The difference between the two  companies is like comparing the Zune to iPod touch. The conventional method of R&D is to put a rough product idea before the brain trust and ask them to do it better. The problem for Microsoft in competing with Apple is that by the time Microsoft identifies the next big thing, Apple has already done it so well it is hard to improve. By the time you have the  improved version ready for market, Apple release their next version and suddenly there is nothing left to wow the market. After all these years, who wants to buy a Zune? Sort of like comparing a BMW to a Yugo.

The reason Apple is so careful to keep new products under wrap is not as much the advertising punch, which is considerable, but mainly to keep the competition guessing as long as possible. Why let the cat out of the bag early and have your announced product labeled vaporware, anyway? In time everything is copied and some people are willing to buy the knockoff Rolex -- or iPhone.

Within days of the iPad launch a number of competitors slate computers were scrapped before they were even launched. Apple had set the bar so high and at such a competitive price there was no reason to lose money introducing second rate junk.  

Some people can't think of anything new themselves.  Some people can't think of anything new themselves, but know it when they see it. And some people not only can't think of anything new themselves and don't understand what is so profound when they see -- they poo poo the idea. Remember when Steve Balmer mocked the iPhone?  "Can't compete with our Microsoft mobile OS," he said.
  
Once a new product gains a strong market share, some people want to copy the concept and make some of the money that is the rightfully due the innovators. That is where patents are supposed to come in.   bet there are as many lawyers on staff at Apple as there are R&D staffers.  The patent situation also requires secrecy; in many countries now, the first to file is the one who get the patent, no matter  who actually invented the device.  

Apple's secret comes down to one word: focus. If nothing else Steve Jobs demands focus on the details and user experience. Elegance flows from both the design tastes and industrial design and the no-nonsense, absolute authority of Jobs.  You have to know there are a lot of ideas under consideration at Apple that will never be released. Apple has the ability to refocus staff on what is next to be launched.     

I think the next big thing will be TV content related ...  perhaps using the new server farm Apple is building. The Apple TV is too lame to continue but has not been scrapped. Let's see what "one last thing" Steve. Jobs has up his sleeve this time.

Greg Mills does faux wall art (http://www.gregmills.info) and runs Cottage Industry Solar Shops (http://www.cottageindustrysolar.com).

 
AAPL
$282.52
Apple Inc.
-1.23
MSFT
$24.38
Microsoft Corpora
-0.11
GOOG
$525.62
Google Inc.
-0.17
MacTech Search:
Community Search:

Introducing the App Hall of Fame!
App discoverability continues to be a real issue. With the fast churn of apps in the App Store, an app has only a few weeks of promotional life in it before it‚Äôs largely forgotten. There are a few things developers can do to fix that, but those... | Read more »
Gobliiins Are Coming
In the midst of the huge Q4 launch schedule, the cult classic, Gobliiins, as well as the rest of the trilogy, are being ported to the iPhone in all of their original glory. The Goblins trilogy was a quirky Atari/Amiga game series from the early 90‚Äôs... | Read more »
myPhoneDesktop – Chrome to iPhone Extens...
Anyone who has used myPhoneDesktop knows that it is a fantastic tool for streamlining your onscreen workflow. Instead of having to type line after line into your phone directly, you can use myPhoneDesktop to type from your computer directly into... | Read more »
Classes Review
Developer: Dustlab Price: $0.99 Version Reviewed: 2.4.7 iPhone Integration Rating: 3 out of 5 stars User Interface Rating: 4 out of 5 stars Re-use / Replay Value Rating: 3 out of 5 stars Overall Rating: 3.33 out of 5 stars | Read more »
AutoVerbal Talking Soundboard Pro helps...
Being able to speak and communicate with others is something that many of us take for granted. It‚Äôs not so easy for many folks though, in particular for individuals with autism spectrum disorders, as well as those who have suffered various brain... | Read more »
Pocketbooth Review
Developer: Project Box Price: $0.99 Version Reviewed: 1.0 iPhone Integration Rating: 4 out of 5 stars User Interface Rating: 4 out of 5 stars Re-use / Replay Value Rating: 4.5 out of 5 stars Overall Rating: 4.17 out of 5 stars | Read more »
Get Your Roast Right With ‘Time To Roast...
Roasting meat, in the cooking world, is about as simple as it gets. The greatest roast recipe I‚Äôve ever found is from Michael Ruhlman‚Äôs website, with the recipe titled, ‚ÄúThe World‚Äôs Most Difficult Roasted Chicken Recipe.‚Äù | Read more »

All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.
Greetings, and welcome to the new MacTech web site! Our home page is designed to be your Industry Dashboard -- so you can have a snapshot of all that's relevant in the industry in one easy location. Many readers tell us that because the information is updated so frequently, they are now checking the site multiple times a day. Here's a quick run down of the features on the new web site, which can be subtle. We truly hope you register so that we can keep you up to date about new features as they are implemented. And, please use the BETA button in the top right to provide us any feedback, suggestions or bugs. We love to hear from you.