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Steve Jobs on Microsoft's R&D budget

Here's one of the most widely quoted remarks from Apple CEO Steve Jobs at Apple's Worldwide Developers Conference today: "You know, our friends up north spend over $5 billion a year on R&D and yet these days all they seem to do is try to copy Google and Apple. I guess it's a good example of how money isn't everything."

The characterization of the figure is technically correct, but Microsoft's R&D budget is actually well over $5 billion. The company spent $6.2 billion on research and development in fiscal 2005, and $7.8 billion the year before that, according to its SEC filings. (Scroll down to the Product Development heading in Microsoft's last Form 10K.) Of course, the higher spending would only bolster Jobs' point, if you agree with the observation he is making -- and I'm sure many of his "friends up north" wouldn't. Microsoft, by the way, declined to respond in general to Apple's statements today.

That's it for me from WWDC. If you haven't seen it, here's the initial story that I filed from the conference earlier today, with more on what was discussed.

Posted by at August 7, 2006 6:44 p.m.
Category:
Comments
#10122

Posted by unregistered user at 8/8/06 3:13 a.m.

Microsoft's R&D is not only for Windows OS. It includes servers (a bunch of them) search etc. It is same as comparing R&D budget of Lamborghini to R&D budget of Toyota.
Everyone can take shots at Microsoft. They are already successful (that is why everyone aims at them)

#10142

Posted by number.61 at 8/8/06 10:28 a.m.

Even looking at Microsoft's R&D as a whole, Jobs' quote still stands. Microsoft spends a great deal of money on research and development and frankly all they can do is come up with devices/ideas already on market or in development.

I haven't been very impressed with their R&D in the past couple of years, especially with the budget they are given.

#10150

Posted by EleFusion at 8/8/06 11:08 a.m.

number: what r&d? the widgets are copied, the unix/Apple i'm sure would match/exceed the "winfs" they have since clobbered so they can cha-ching asap.

personally, i'm disliking microsoft more and more. i understand copying the competition to make your own properties better..but comeon already.

#10176

Posted by unregistered user at 8/8/06 4:02 p.m.

R&D isn't pure research. Most of it is developer/test/PM salaries for new and existing products that make money--Windows, Office, servers. A bit of it on speculative new stuff that doesn't make money--MSN, Xbox, unified communications, Dynamics. Microsoft only spends about $250 million a year on pure research, which is still significant, but don't let quotes from Bill Gates on their huge R&D spend fool you into thinking this goes into innovation.

#10244

Posted by unregistered user at 8/9/06 6:44 a.m.

Steve Jobs is a funny guy. Its easy for him to have a dig at a more successful company and claim that his OS is better when you can count the number of Mac software titles on one hand and the number of people writing viruses and malware for it on one knuckle. A Mac is like a Corvette with no engine. Sure it looks nice but what can you use it for?

Jobs' criticsm can't be taken seriously.

#10251

Posted by unregistered user at 8/9/06 8:17 a.m.

"Sure [a Mac] looks nice but what can you use it for?"

More proof that Windows users don't have a clue.

#10254

Posted by unregistered user at 8/9/06 8:50 a.m.

R&D = tax break. Pure and simple. Just another intangible asset that allows you to legally minimise your tax burden.

#10293

Posted by unregistered user at 8/9/06 6:47 p.m.

R&D = research & development

#10294

Posted by unregistered user at 8/9/06 6:51 p.m.

"Sure [a Mac] looks nice but what can you use it for?"

Um... let me put it this way.
I used to use a PC all my life up until 5 years ago.

I am finding more things that i CAN'T do with my Windows PC that i can use with my Mac. In fact, i threw out my PC (well, donated it to godwill) when Boot Camp came out... but since then, the only thing i use Windows for is Sim City.

Macs can be used for school, for business, for photography, designing, gaming, just about anything you use a PC for...

and lots of the time, the apps run smoother for me on the Mac than the PC.

This isn't a matter over which is superior, Mac or PC...
It all depends on what your flavor is. I like Macs because they crash less than PCs for the apps that I use, and because I dont want to worry about opening web pages and get viruses by doing so. I like PCs because they run Adobe apps faster (especially since a lot of them aren't Universal yet). But quite frankly, speed is a small thing to sacrifice for me if it means getting the stability and features of the Mac.

Oh, and Exposé. i can't live without that.

But i understand how that PC user feels. I used to be like that. Man, was i an idiot.

#10329

Posted by imguessing at 8/10/06 10:31 a.m.

The Long, Slow Death of Microsoft

Is it just me, or has Microsoft turned into the Soviet Bloc, complete with Berlin Wall? Somewhere along the way Microsoft decided having a monopoly Operating System & Productivity suite wasn't enough. They wanted to control the digital world.

Microsoft outwitted, out performed, or simply crushed competitors. They danced lightly, while behemoth legacy digital companies, plodded slowly. No sympathy, no prisoners. And along the way, created a de facto standard, not only for Operating Systems & Productivity suites, but also for the way so many software packages of today, look & feel.

Microsoft was a single-minded money making (some say grubbing) machine. But not anymore. Now they want to be your security vendor, your CRM vendor, your PDF vendor, EVEN….your ODF vendor. Won't someone please give those boys & girls a compass?

What happened to building a world class OS? Windows 95 was world class, when it was released. Yeah, I know, I know. Copied Apple….blah blah blah. That's a whole other subject. The fact is, Microsoft rocked the world with Windows 95, and if they put their blinders on, they could do it again.

But they won't. When you've been looking at everyone in the rear-view mirror for 15 years, your driving skills erode. And now that the next wave of technology companies have pulled up along side the bus, all Microsoft can do is beep, REAL LOUD, and hope someone is listening.

Many still listen, but there are fewer believers every day. Microsoft yells, and they threaten, and they posture. Use to be, when Microsoft talked consumers listened, and companies shivered. Now there is snickering, and some outright laughter. Nobody takes it all as gospel, fewer & fewer companies are scared, and worst of all, a lot of folks just don't care anymore.

As sure as it happened to the Berlin Wall, Microsoft will crumble, actually, IS crumbling. With $30 – $40 billion in cash reserves & 90% of the desktop OS market, Microsoft has an enormous amount of momentum. It will take 15 to 20 years, but Microsoft will never be stronger, than it is right now.

I'm guessing, if you listen closely, you can hear the stones falling.

I'm Guessing
http://imguessingblog.blogspot.com
imguessingblog@gmail.com

#14553

Posted by unregistered user at 10/16/06 3:46 a.m.

On and on, and they still dont get any better.
Stupid microsoft, not long till they buckle and fail.

#47644

Posted by unregistered user at 8/22/07 11:50 a.m.

the analogy of lamborghini vs toyota is spot on.
not only does toyota spend way more than lamborghini (or audi on
lamborghini) R&D, but it holds for the user experience as well.
actually in that case Yugo might fit M$ better...

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