TECHNOLOGY - Aug. 14, 1996

Apple to Trim Research Spending: Apple Computer Inc. plans to cut the percentage of revenue it spends on research and development, including freezing research staffing and possibly charging customers for software that is now given away, according to Ellen Hancock, Apple’s vice president for research. Declining to elaborate on the targets, she said President Gilbert F. Amelio has given orders to reduce research spending. Unlike most personal computer makers, Apple designs its own hardware and operating system software, resulting in added expenses that put it at a disadvantage with its rivals. Analysts estimate Cupertino, Calif.-based Apple spends about 6% of total sales on research. In the quarter ended in June, Apple’s sales were $2.2 billion.