NEW YORK (TheStreet) -- Shares of Apple Inc. (AAPL) are up 1.16% to $95,82 in pre-market trade after it was reported that the company's third quarter earnings filing showed a 36% increase in R&D spending compared with the prior year..."it means that something more than just the annual iPhone refresh is coming soon," the Financial Times reports.
Apple's R&D spending of $1.6 billion in the three months to June represented 4% of sales - the highest ratio since 2006, according to BTIG Research analyst Walt Piecyk, the year before Apple unveiled the first iPhone, The Times notes.
TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate APPLE INC (AAPL) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."