Apple Computer Inc. is forecasting flat revenues for 1986 but higher earnings despite a 50 percent increase in research and development
expenditures, John Sculley, president and chief executive, told analysts Monday in New York.
”Even with more than a 50 percent increase in R&D spending in 1986, we expect a significant improvement in year-over-year profit despite our assumption of flat revenues,” he said, predicting significant growth in profit in Apple`s third and fourth fiscal quarters.
Sculley predicted that revenues for this Christmas quarter, Apple`s first fiscal quarter, will be lower than last year`s.
He emphasized, however, that Apple expects to be the leader in Christmas sales. He said the company plans to sell more products than last year, when inventories stacked up on retailers` shelves.
He predicted a lower second quarter in 1986 in both sales and earnings.
Sculley also indicated that Apple will continue to emphasize the consumer and educational markets and will seek niches in the business market that reflect the strengths of the Macintosh computer.
