In its annual report filed with the Securities and Exchange Commission (SEC), Apple revealed that its research and development (R&D) expenditures increased 13 per cent or $50 million to $430 million in 2001 as compared to 2000. R&D spend totalled $430 million, $380 million, and $314 million in 2001, 2000, and 1999, respectively.

According to Apple, this overall increase in R&D spending over the last two years is directly related to increases in R&D headcount of approximately 25 per cent over that time to support expanded product development efforts.