Apple still believes it can "innovate its way" out of recession, with a number of "great products" promised over the coming months by Apple's chief financial officer, Fred Anderson yesterday.

The company has increased its research and development spending by 13 per cent year-on-year. According to MacCentral, Anderson said: "Over the next year we'll be introducing some truly great hardware and software as Apple leads the transition to a digital lifestyle."

The company will launch a product next Tuesday that observers say will form a piece of Apple's "digital hub" strategy. Industry observers speculate this could be a digital-music device.

Despite its focus on R&D, Apple successfully reduced operating expenses during the quarter. Apple also promised to maintain its lead in portables sales by aggressive pricing during its crucial Christmas shopping period.