[NUMBERS] How much did GAFAM spend on R&D in 2017?

by bold-lichterman

In the United States, digital giants once again dominated the ranking of the companies that spent the most on research and development in 2017. According to FactSet data reported by Recode, Amazon appears at the top of the list with an envelope of 22.6 billion dollars dedicated to R&D during the past year, or 41% more compared to 2016 when Jeff Bezos’ firm already occupied the first place. Last October, Amazon also became the world’s number one spending on R&D, ahead of Alphabet, the parent company of Google, and Intel, according to PwC.

In recent months, the American marketplace has distinguished itself by opening its first Amazon Go store, a high-tech grocery concept where the customer no longer needs to go to the checkout to pay. With a view to establishing itself in physical commerce, Amazon also achieved a big blow in June 2017 by buying the organic supermarket chain Whole Foods Market for $ 13.7 billion, the largest acquisition of Amazon since its inception.

NUMBERS How much did GAFAM spend on RD in 2017
FactSet data published by Recode.

Amazon far ahead of Alphabet and Intel

In 2017, Amazon reported revenue of $ 177.9 billion, up 31% from the previous year ($ 136 billion). Over the whole of 2017, the American firm also recorded a record net profit of 3 billion dollars, a jump of 28% compared to 2016. Proof of the good form of Amazon, the Seattle group hired nearly 130,000 people over the past year. For the record, more than 5 billion products were shipped worldwide last year via Amazon Prime.

Behind Amazon, Alphabet, its first pursuer, is far behind with only 16.6 billion dollars spent on R&D. Intel closes the step on the podium with an envelope of 13.1 billion dollars dedicated to R&D in 2017. Microsoft (12.3 billion dollars) and Apple (11.6 billion dollars) complete the Top 5, which weighs a total of $ 76.2 billion. Among the notable occupations in this ranking, note that of Facebook, which went from 13th place in 2016 to 9th place last year by increasing its R&D spending by 32%, to 7.8 billion dollars.