Tim continues Apple’s investment strategy

Tim Cook, from yesterday’s Apple earning’s call:

We’ve invested through economic uncertainty in the past, and we’ve always come out stronger on the other side. In fact, some of the most important breakthrough products in Apple’s history were born as a result of investing through the downturn. We’ve also seen these times as opportunities to invest in new markets, just as we’re doing now in areas such as India and other emerging markets.

Buy low, sell high. Invest when assets are cheap, reap the reward as value grows over time. Apple has a long history of investing during market downturns.

Apple itself was born as the US emerged from a steep recession in the mid-1970s.

The original Mac was developed during a severe global recession in the early ’80s.

OS X was developed as the dot-com bubble was bursting, and released in the middle of another recession. That same recession also saw the birth of the iPod.

Finally, what many people refer to as The Great Recession started in late 2007, as Apple was in the throes of perhaps its greatest product release, the iPhone.

Tim said:

Some of the most important breakthrough products in Apple’s history were born as a result of investing through the downturn.

These are not hollow words. Apple has historically poured money into R&D and released important new products during economic downturns. This strategy is an Apple hallmark.



  • Mike N

    But the economy is not currently in a downturn?

    • Adrayven

      As far as Wall Street is concerned, it is.. The sky is falling on commodities like Oil and they are running for cover.

      Not that reality really ever relates to WS

    • tylernol

      China’s economy is, and that is dragging everything else down. Oil prices falling as well, which is affecting American energy companies that were doing quite well until Saudi Arabia started dumping oil to drop the prices.

  • I don’t know. Next time we hear rumors of a big Apple innovation, I may shift my 401k to bonds! Five years from retirement. Don’t want to have to delay that!

  • Thank you Dave Mark for this article. I hope you can find more information about Apple on http://jatapp.com/blog/ Thre are a lot useful articles you can find there.