Apple rolls final Macs in move to Intel

Apple Corporation Chief Executive Officer Steve Jobs (centre) meets with software developers at the conference. Picture / Reuters

SAN FRANCISCO - Apple Computer today introduced the last of its computer models to be converted to Intel chips and said it would launch the next version of its operating system in spring 2007.

Some investors at Apple's annual software developers conference, expecting a new iPod or similar to be announced, were disappointed.

Shares in Apple fell 1.6 per cent after Chief Executive Steve Jobs did not spring his trademark surprise on the conference, such as a new music player or new digital movie rental service.

"They announced exactly what people were expecting. To get a rise (in stock price) you have to surprise investors," said Gene Munster, an analyst at Piper Jaffray.

The week-long conference has long focused on the Macintosh computer and is aimed at developers who create applications for the Mac beyond what Apple turns out.

Apple announced the new line of high-end desktop computers called the Mac Pro that will use Intel's Xeon chipset and run twice as fast as the version it replaces.

The Mac Pro line replaces the Power Mac series and will use dual Xeon chips in each computer. Apple said a computer in the new line with a suggested configuration would retail for about US$2,500. The new machines were shipping on Monday.

Apple ended the second quarter with 4.8 per cent of the overall US PC market, up from 4.4 per cent a year earlier, according to market research firm IDC. Apple's share of the US retail notebook market doubled to 12 per cent as measured by units in June from January.

In Apple's most recent quarter, better-than-expected sales of Mac and iPods helped fuel a 48 per cent rise in net income. Investors took the strong computer sales to mean Apple can look to its Mac platform for future growth and not just to the iPod.

"I think most investors think we have two legs to stand on," Jobs said in an interview. "One of them is the Mac and one of them is the music business. Both businesses are doing great."

Phil Schiller, head of global product marketing for Apple, said the transition to Intel chips is complete and "today the PowerMac is going to fade into history."

Jobs announced at last year's developer conference that Apple would move from chips made by IBM to those made by Intel, the world's largest chipmaker.

Jobs kicked off this year's conference with a preview of the next version of Apple's OS X operating system, code-named "Leopard", which it plans to launch next spring.

Apple showed several new features of the system, including a file back-up feature it called "Time Machine" and improvements to its email and instant messaging software. Another feature allows users to move from their standard desktop view to an archival view showing every change made to a particular file.

Leopard could even arrive before Vista, the long-delayed next version of Microsoft's Windows operating system. The consumer version of Vista has been put off until early 2007, said Gartner analyst Van Baker.

Shares of Apple fell US$1.09, or 1.6 per cent, to close at US$67.21 on the Nasdaq.

- REUTERS