ONLINE DOCUMENT: APPLE TO HALVE PC MODELS IN BID TO HALT SALES SLIDE

Apple Computer, the troubled personal computer industry pioneer, will halve the number of models it offers as part of a restructuring program aimed at returning to profit.

Gil Amelio, who took over as chairman three months ago after Michael Spindler was ousted, said that Apple had to "get back to work.""Apple is at a crossroads. We can return to prosperity or begin a long slow decline into irrelevancy. The difference will depend on how well the organization comes together behind united goals," said Amelio, former chief executive of National Semiconductor.

Last month the group reported a $740 million loss in its second quarter to March 29, on sales down 18 percent to $2.2 billion. Last week it notified retailers of flaws in several of its top-selling models and offered to repair tens of thousands of computers free of charge and replace others.

Apple's organization had been "too fuzzy," Amelio said. He intends to create four hardware divisions - each responsible for its own financial performance - and software, service and Internet divisions.

A new division would be dedicated to "building bridges" between Apple's Macintosh and other types of computers.

Apple would halve the number of Macintosh models it offers, to about 40, over the next year. Six versions of the Macintosh software operating system will be consolidated into one.

The most radical change, already indicated, would see Apple "aggressively license" Macintosh software to other computer manufacturers.

Amelio said Apple was working with International Business Machines on the development of a Macintosh-compatible laptop computer.

This could represent a breakthrough in Apple's efforts to persuade leading PC manufacturers to adopt Macintosh software. He acknowledged that Apple needed the continued support of software developers, and announced a $20 million fund for co-marketing activities with them. There was also a plan to help smaller developers find venture capital funds.

Newton, Apple's failed "personal digital assistant," and its "home appliance" development efforts would be refocused for use with the Internet, he said.

Apple, which has been slow to recognize the significance of the Internet's rapid growth, would introduce a low-cost Internet access terminal later this year, he said.

Larry Tesler, Apple vice-president of Internet technology, said that by the end of this year all Macintosh products would be Internet ready.

(Distributed by Scripps Howard News Service.)