Maker of Apple Clones Turning to Microsoft

Apple Computer Inc. shares fell to their lowest price in more than 11 years after the leading maker of Macintosh computer clones said it plans machines that use rival Microsoft Corp. software and Intel Corp. chips.

Shares of Apple fell $1.06 to $13.19 in trading of 4.02 million shares, three times the three-month daily average. Earlier shares touched $13.125, their lowest since April 7, 1986.

Power Computing Corp., the original company licensed to make clones of Apple’s Macintosh personal computer line, yesterday filed to sell 3 million shares in an initial public offering. The IPO was designed in part to raise money for the company’s foray into the “Wintel” market.

“Apple’s platform is a dying species,” said Henry Voskoboynik, an analyst with ABN Amro Chicago Corp. “Even the clone makers are turning their back on Apple.”

Apple, which has lost almost $1.5 billion in the last 18 months, began licensing clone makers two years ago in an attempt to reverse the declining demand for machines using its Macintosh operating system.

While clone makers such as Power Computing have seen sales increase, Apple’s market share continued to decline. Last year Apple’s share of the PC market dropped to 5.2% from 7.9% in 1995, according to Dataquest, a San Jose-based research firm. Apple’s market share fell to 3.5% for the first quarter of 1997.

Apple’s stock price reportedly has also been hurt by speculation that co-founder Steve Jobs may have sold his 1.5 million shares.