Apple plans faster computers, direct sales

Apple Computer Inc., struggling to rekindle excitement about its future and turn itself around, plans Monday to disclose major changes to its products and how it sells them.

Steve Jobs, the company's co-founder and interim chief executive officer, was to preside over the announcements at the same theater where he unveiled the Macintosh personal computer more than a decade ago."This is important because it puts the focus back on Apple in a positive light," said Tim Bajarin, president of Creative Strategies Research International in San Jose, Calif.

Apple, based in Cupertino, Calif., said only that Jobs would deliver some "milestone news" about its product line and the way it does business.

But industry analysts believe Apple will introduce new Macintosh computers based on the latest PowerPC microprocessor, speedy chips comparable to the competition's.

Apple also is expected to announce a Web site where customers can buy its products directly. The company, which currently sells its computers to consumers through retailers, is imitating Dell, Gateway, Micron and other successful direct sellers.

In addition, speculation is growing that Apple also will discuss plans for network computers - stripped-down, lost-cost machines - with ally Oracle Corp.

Apple is reportedly developing these computers, which lack hard-drives and are intended to make computing cheaper and more ubiquitous. They are seen as a challenge to Microsoft Corp. - whose operating software runs the vast majority of personal computers - because NCs use programs stored in a network instead of desktop hard disks.

The Wall Street Journal reported Friday that Apple may announce on Monday that Oracle will provide the necessary database software for what will be called the Macintosh NC. The paper cited unidentified sources close to the company.

Apple pioneered the commercial personal computer in the late 1970s and made computing easy with the Macintosh in the mid-1980s. But the company was hammered by the growing popularity of Windows-based computers, suffering alarming losses to its bottom line and market share.

The company has gone through several reorganizations and bouts of cost-cutting. And under Jobs, who took temporary charge in July, Apple has drastically restricted the ability of other computer makers to clone Macs and forged an alliance with long-time enemy Microsoft.

The company also recently reversed a decision to spin off its Newton hand-held computer business and streamlined the process of getting computers to customers through retailers.