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Technology Stocks : Apple Inc.

AAPL 277.50

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2:21 PM EST

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To: cfimx who wrote (402)	10/19/1996 3:33:00 PM
From: Andrew Kruh	of 213185

Twister - One other point on your R&D thread. Apple has cut some R&D because: A) they have to B) they can. Because Apple was always so damn proprietary before, they had to do all of their own research for themselves. But look at the last couple of months. Power Computing used the 604e chip to go to 225mhz, then a company called Exponential comes up with the 500mhz chip. Even the CHRP boxes are being worked on with considerable support from IBM and Motorola. All of this would have been inconceivable even a year ago, and at this point with Apple needing to get their finances in order, why not let someone else do some of the work for a change? That being said, I'd rather this not be a long term trend. To take advantage of this 'transition' market in the PC world I think R&D will more important that ever for Apple. But if in the next quarter or two (at most) there is not a blown out effort on R&D while Apple consolidates its profitable position, I'm not going to be too excited about it. Plenty of other companies can bear the load for 6 months or so. Good luck- Andrew

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