
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, November 12, 1993                   TAG: 9311120180
SECTION: BUSINESS                    PAGE: A-7   EDITION: METRO 
SOURCE: San Francisco Chronicle
DATELINE:                                 LENGTH: Short

APPLE TO UNVEIL IBM-COMPATIBLE MACINTOSH

After years of fighting the fraternity of IBM-compatible computer makers, Apple will abandon its stand-alone position and introduce a Macintosh computer that will run both Macintosh and IBM-compatible software, sources said Thursday.

The new Macintosh, to be unveiled on Monday, will basically offer two-for-one performance.

Buried inside the new machine will be a Motorola microprocessor to handle Macintosh programs and an Intel Corp. chip to run Microsoft Corp.'s IBM-compatible Windows and DOS software.

Sources close to the Cupertino, Calif.-based computer maker expect the new machine to sell for a $300 to $700 premium over prices of existing Macintoshes designed for the home office.

Sources say the new machine will appeal to small-business owners who have clients using both systems, and to large institutions that employ workers who prefer Macintosh applications.

Apple's easy-to-use, point-and-click graphic interface enabled the company to charge higher prices than IBM-compatible machines for many years. But then Microsoft introduced Windows, a software program that mimics the user-friendly graphic approach of Macintosh.

By May 1990, many customers had found the updated Windows software as easy to use as a Macintosh, biting into Apple's sales. A subsequent price war hit the IBM-compatible market, further eroding Apple's earnings.

"Clearly Apple's been isolated from the rest of the industry until now," said Doug Kass, a Santa Cruz-based analyst. "This is an acknowledgement of the huge installed base of Windows applications."

He said such a strategy is key to Apple's success in the '90s.

by CNB