Apple Dumps Newton Computer

Apple Computer Inc., in its latest move to stem losses, is scrapping its innovative but money-losing Newton hand-held computer after failing to find a buyer for the division.

Apple’s gizmo never quite caught on with businesses and consumers even though it inspired a new class of computing devices, some small enough to fit in a shirt pocket.

Overall industry sales of hand-held computers more than doubled to 2 million units last year while Newton sales slipped.

Apple said ceasing development of Newton will free it from a distraction to focus on developing software for its flagship Macintosh computers. But some analysts worried the company would further alienate customers worried about Apple’s ability to survive persistent losses.