Intense research and development are some of the primary considerations that any company will factor in for growth purposes. This will perhaps explain why Apple is plunging too much investment into its research and development. Amidst all the intense speculations of what Apple is up to, the company’s CEO Tim Cook says, they have no regrets.
Speaking at the Goldman Sachs Technology and Internet Conference, chief financial officer Luca Maestri outlined that every company must endeavor to be different from its peers in the industry. This is exactly what Apple is doing even though a stoked rumor is pointing out that the company is working on cars.
Our interest is in strategic investment: Apple explains
The Cupertino giant has been showcasing tremendous growth over time in a push to envelope on innovation. Records indicate that in excess of $10 billion was spent on research and development in 2016, an increase of the $8.07 billion in 2015. This translates to 5% of the company’s net sales.
However, Maestri argues that they are more interested in strategic investment, hence the increasing figures. He writes, “Today, we do much more in-house development of some fundamental technologies than we used to do a few years ago when we did more of that in the supplier base.”
But Apple’s “product portfolio is much larger
Notably, Apple has been spending considerable amounts on cash on enhancing its products, which so far have been of superior performance. The likes of iPhone 7 Plus has not only been credited for its special camera sensors but also for its chips in its AirPods. They are incredible and worth the current market competition.
However, Apple has denied being in support of the lower tax policy for repatriation of funds kept overseas. The company is one of the tech giants that is hoarding huge amounts of money in other countries. The policy, which was introduced by Trump, is currently under review by his administration and Republican Congress.