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SanDisk Allocated 14.60% of Its Revenues to R&D in 3Q15

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Western Digital’s R&D expense decreased in 3Q15

In 3Q15, Western Digital’s (WDC) expenses for research and development (or R&D) have decreased to $385 million from $437 million in 3Q14 and $401 million in 3Q13.

Research and development allocated expenses comprised 11.45% of total revenues in 3Q15. In comparison, these expenses comprised 10.54% and 11.08% of total revenues in 3Q13 and 3Q14, respectively.

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SanDisk’s R&D expense decreases in 3Q15

In 3Q15, SanDisk’s (SNDK) expenses for research and development decreased YoY to $212 million from $223 million in 3Q14. These expenses increased in comparison to the company’s R&D expenses of $184 million in 3Q13.

SanDisk’s research and development allocated expenses comprised 14.60% of the company’s total revenues in 3Q15. In comparison, these expenses comprised 11.32% and 12.77% of total revenues in 3Q13 and 3Q14, respectively.

Seagate’s R&D expenses decreased YoY in 3Q15

In 3Q15, Seagate’s (STX) research and development expenses decreased to $328 million from $342 million in 3Q14 and increased from $294 million in 3Q13. The company’s research and development allocated expenses comprised 11.21% of its total revenues in 3Q15. In comparison, it comprised 8.42% and 9.03% of total revenues in 3Q13 and 3Q14, respectively.

Research and development is an important component of the technology sector. All firms invest heavily in R&D in order to innovate and introduce new products and services to their customers. Although the absolute expenditures for the firms have been decreasing year-over-year, R&D expenses have increased as a proportion of total revenues.

Western Digital makes up 0.50% of the Technology Select Sector SPDR ETF (XLK) and 0.35% of the Powershares QQQ ETF (QQQ).

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