Apple Cuts Home Computer Prices In Preparation For Christmas Sales

Days after giving customers new reason to believe Apple Computer Co. will survive, the company is cutting prices ahead of the important Christmas-shopping season to compete harder against Windows-based PCs.

Apple said it would take 20 percent off some of its newest Performa models as of Sunday when Apple starts advertising for the holiday season - the busiest sales period for computer makers.

The company is also introducing two new models - a low-end $1,499 home computer and a more powerful machine with a 200-megahertz microprocessor and a $2,699 price tag.

The pricing signals a shift in Apple’s strategy of charging premiums for its computers and puts them more in line with the cost of comparable Intel processor machines that run on Microsoft Corp.’s Windows operating system.

Apple reported this week that it turned around a string of money-losing quarters that had stirred doubts about the computer maker’s long-term prospects among some buyers, particularly big corporate accounts.

“This puts them in the game,’ said Tim Bajarin, president of Creative Strategies Research International in San Jose. He said Apple’s new chief executive officer Gil Amelio “really squeezed” suppliers to win concessions enabling Apple to boost the Performa line.

A year ago, Apple was hurt when it misjudged customer demand. But David Russell, manager of the Performa line, said the company should have sufficient supplies and still expects to make money on the machines despite the lower prices.

The discounted computers are mostly intended for home and school use. The 6400 with a 180-megahertz processor, 16 megabytes of main memory, and a 1.6-gigabyte hard drive was $2,399 and now sells for $1,899. The 200-MHz 6400 with 16 MB of RAM and a 2.4 gigabyte drive that sold for $2,799 is now $2,199.

The new low-end Performa is a 160-megahertz machine with 16 MB of RAM and a 1.2-gigabyte drive. The new high-end, 200-megahertz PC has 32 MB of RAM, a 2.4-gigabyte hard drive and circuit boards for video editing.

In comparison, a Sony 200-MHz computer with the same amount of RAM and 3-D video display is being advertised for $200 more than the comparable Apple.

None of the Performa machines include monitors, but Apple is offering $150 rebates to customers who buy a monitor and printer when they buy a Performa.