• RIM Outpaces Apple in R&D Spending

    In a new initiative by Toronto's Globe and Mail that examined 380 international companies, RIM has proven that it still has lots of research to put into motion. At least that is what the study suggests given that the Canadian company came out as the top-rated Canadian corporation and 205th out of all the companies in the study group.

    That is 143 slots higher than Apple, which ranks 348th, spending only 2.2 percent of its net sales in Research and Development. By comparison, RIM devotes 5.8 of its net sales into R&D.

    According to one source, the selection of companies for this study was based on “international companies that spend more than $100-million (U.S.) a year on R&D, and whose expenditures in this area were greater than their sales”.

    This is not to say that RIM spends more net cash on R&D, but rather as a ratio of expenses over net income.

    Analyst Michael Bowman stated, “If there’s a lesson here, it’s that research does appear to pay off, although it’s no guarantee of success.”

    Surely this will bolster RIM's stock price if ever so slightly. Bowman adds, "next time you are screening for stocks, consider looking at each company’s R&D costs as a percentage of net sales. Those companies that are able to keep customers happy with innovations and new ideas often find they have a leg up on the competition."

    Woohoo! Score one for #TeamBlackBerry

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