Leadership Article 3 Page 1

Nokia consistently outspent Apple on mobile phone R&D research in the decade leading up to the launch of Apple’s iPhone. In fact, from 2004 to 2007, before the iPhone was released, Nokia spent the equivalent of $22 billion on R&D, whereas Apple spent a paltry $2.5 billion by comparison.

“Despite outgunning Apple Inc. on research and development spending, struggling handset maker Nokia Corp. was unable to head off the threat of the iPhone back in 2007, a comparison of R&D expenditures at Apple and Nokia shows.” (Grundberg, 2014)