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Samsung increases R&D spending, decreases ad budget

Samsung is going through some rougher times than it’s used to with sales last year falling 9.8%. According to an audit report, Samsung Electronics will be increasing its research and development (R&D) budget around 7.4% to KRW 15.3 trillion, that is $13.8 billion.

The company will be spending over a billion dollars a month for R&D this year. Another way to look at it, 7.4% of sales go to R&D. That’s the most Samsung had ever spent on developing new products.

To balance things out, the advertising and sales promotion budget is getting cut 9.4% compared to last year.

With sluggish performance from the Galaxy S5, getting orders for a total of 20 million Galaxy S6 units must be music to the ears of Samsung execs.



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