In the tech industry, companies that have survived for the long haul have done so by adapting to changing markets and consumer demand, while still innovating and bringing new products to market. Unfortunately, product development takes funding, and too many companies have experienced the destruction of their bottom line when they took a risk on a new product that didn’t pay off.
Like other tech giants, Apple has experienced the hits and misses of products that were either well received or total busts. The company has reinvented itself several times through the decades, and has ended up in a good market position, despite the current slowing in iPhone and iPad sales. Apple is hedging its bets and preparing for that shift with forays into other projects, like its widely-known self-driving car venture, but that too has shifted focus.
Rather than continue with the development of the vehicle itself, Apple seems to have moved more in the direction of creating the full package of software that will operate the vehicle. By working in that direction and finding an existing automaker to produce the car, the tech company can save on the investment in the physical product and focus on the digital product.
But this isn’t a sign that Apple is struggling, or abandoning any previous plans. In fact, according to Bloomberg, Apple will actually increase its R&D spending across the board by about 30% this year over last. The company also may reportedly come back to its vehicle plans in the future. For now, the company will do well to produce a solid software package that other companies may come asking for, and bring more funding with them.