Apple, Inc.(NASDAQ:AAPL) continues to splurge on a project that may not generate returns that commensurate with the investment in the near term, Bloomberg'sMark Gurmansaid on Sunday.

Long-Term Focus: Apple is playing a long game with its efforts to build an in-house cellular modem, which is a key component of the iPhone, Apple Watch and other devices, said Gurman in the latest edition of the weekly Power On newsletter. Instead of looking at a major payoff at the outset, the company is hoping its modem will evolve into a more "advanced component" that could...