Palm R&D Spending Increases 116%

Posted By: Ed Tuesday, August 14, 2001 12:10:44 PM

In Palm's most recent Annual Report, they said their research and development expenses were $160.3 million in fiscal year 2001, which ended in June. That's an increase of $86.0 million or 116% over the $74.3 million in fiscal year 2000. They spent 10.3% of their revenues on R&D.

They attributed the increase to hiring more engineers and expenses to support new products introduced during the year, such as the m100, m105, m500, and m505, and expansion of development efforts in areas such as wireless Internet solutions and future versions of the Palm OS.

Most of their research and development costs go to salaries and benefits for engineers, travel expenses, bonuses, related facilities costs, and project and development related expenses. They increased their number of engineers 55% during the year.

The said they expect to spent about the same amount for R&D in the next year.

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mostly OS I hope

ganoe @ 8/14/2001 12:16:19 PM #
I really hope most of what they spent went into Palm OS 5.0, defining the hardware for 5.0, and maybe things like Bluetooth. The new hardware they've released over the last year (m10x/m50x) hasn't been so technologically innovative as to need a doubling in R&D expenditures.

RE: mostly OS I hope
I.M. Anonymous @ 8/14/2001 3:04:11 PM #
With all of the amazing innovation that has taken place within Palm in the last couple of years I'm surprised the budget isn't higher already. The leap from my old Pilot Professional to my Palm 5 is truly staggering! And the OS has come so far from where it was back then . . .

What's next?

Don't bother flaming this, the fact of the matter is that Palm as a company bites and it's just a matter of time before . . . . . . . .

RE: mostly OS I hope
I.M. Anonymous @ 8/14/2001 4:59:17 PM #
Wahhhh...must you PPC people continue to whine about Palm being a "horrible company". Tell me what crashes more...an Ipaq or a Clie?

About Time!

I.M. Anonymous @ 8/14/2001 3:14:34 PM #
I think that the R&D is what this market is all about. The handheld market is going to continue to have big inovations continualy over the next few years, its either lead the pack or die IMHO.

Plus, PocketPC vs. Palm could go either way pretty easily still. If Palm fights hard and manages to increase features/innovation while keeping simplicity... they win. And there is just no way to do this without buying more engineers.


Pocket PC R&D?

I.M. Anonymous @ 8/14/2001 5:52:38 PM #
I hate to say it, but Microsoft's R&D for the Pocket PC must be triple Palm's level. Does anyone know anything different? Do they make this information available.

RE: Pocket PC R&D?
I.M. Anonymous @ 8/14/2001 6:52:28 PM #
How can you say "I hate to say it, but Microsoft's R&D for the Pocket PC must be triple Palm's", then in the same breath ask if anyone can confirm, and whether the information is actually available...???!!! You obviously have no clue at all...

I hate to say it, but my hamster's IQ must be triple yours!


RE: Pocket PC R&D?
AriB @ 8/14/2001 11:39:58 PM #
ok but handspring, handera, sony, nokia and others are all working on the Palm platform so Palm doesn't have to do all the work

RE: Pocket PC R&D?
I.M. Anonymous @ 8/15/2001 12:38:41 AM #
It's pretty hard to measure. I doubt it Microsoft has a number published. But it is safe to bet that they have much bigger human resource in programming department, not to mention market research and external relationship with hardwares makers.

Just to see a wild number: they spent 1Billion dollar for XP marketing.

RE: Pocket PC R&D?
I.M. Anonymous @ 8/15/2001 12:44:26 AM #
bet they are taking a loss on it. heard they make less than $10 on each ipaq. with the low numbers, wince can't be covering costs. m$ can afford to lose money on it forever but i wonder how long they want to.

Need to look at your math.

Spock9 @ 8/15/2001 7:28:17 PM #
You state that Palm spent 116% over the previous year. They only spen 15.7% over, or 115.7% of the previous years amount.

RE: Need to look at your math.
Spock9 @ 8/15/2001 7:29:16 PM #
Ok, maybe I need to read the comment fully. My mistake.

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