Please ensure Javascript is enabled for purposes of website accessibility

Apple to Maintain "Significant" Investments in New Products

By John Ballard - Updated Apr 17, 2020 at 5:02PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

CEO Tim Cook is optimistic about the future of Apple.

Apple (AAPL -0.28%) is not letting its foot off the gas during this pandemic. That's what CEO Tim Cook told employees in a virtual meeting on Thursday, Bloomberg reports. Cook told Apple workers that it will keep making investments in a "really significant way" in new products and will emerge from this crisis in a strong position, according to the report. 

The iPhone maker can certainly afford it, with $114 billion in net cash and investments sitting in the bank. Even with stores closed, Apple has been continuing to pay its retail employees. 

Two black iPhones

The Apple iPhone SE. Image source: Apple.

Focused on the long term

Apple's sales and earnings will be hurt in the short term, especially with the recent spike in unemployment claims. The last thing millions of consumers are probably thinking about right now is buying a pricey gadget. But that hasn't stopped Apple from introducing new products, such as the iPhone SE and new versions of the iPad Pro and MacBook Air. 

Apple is making investments for when demand comes back. In addition to continued development of existing products, Apple has long been rumored to be working on self-driving car technology and augmented reality. Apple has also been making small acquisitions in virtual reality.

Later this year, Apple is expected to launch a new iPhone lineup that offers 5G wireless networking. The iPhone 12 also is expected to include 3D cameras. Apple bulls expect these new features to drive a significant upgrade cycle. 

Of course, the novel coronavirus could delay that upgrade cycle or cause it to be weaker than expected. While Apple is preparing to reopen stores in May, what's clear is that Cook is focused on the long term. Apple has a mountain of cash to support its employees and remain committed to product research.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
$136.33 (-0.28%) $0.39

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.