Apple Cuts Prices, Ships New Rhapsody OS

Apple Computer Inc. on Monday slashed prices on some of its most popular computers and shipped a version of its new operating system to software developers, two key steps in its recovery strategy.

The struggling computer maker cut prices on its PowerBook 3400 laptops and Power Macintosh 8600 personal computers just ahead of the holiday shopping season.

The Cupertino-based company also shipped an early version of the Rhapsody operating system--a major component of its recovery strategy--to 10,000 software developers worldwide.

The moves are part of Apple’s plans to keep customers and software developers interested while it searches for a new chief executive officer, industry analysts said.

“Rhapsody has to win the minds of their customers as quickly as possible,” said Richard Zwetchkenbaum, an independent analyst based in Marlborough, Mass. “They have to come out and make hay with the new products.”

The price cuts should also help Apple clear out older inventory and make way for new products, analysts said.

The preview version of Rhapsody is meant to help software companies begin developing applications for Apple’s next-generation computers, Apple said. A big library of applications, such as word processors or photo-editing programs, is critical to the success of any new computer.

Apple said it expects to release a commercial version of Rhapsody in 1998. The software initially will control the servers that link computers into networks and high-end desktop computers.

Separately, Apple slashed the price of the PowerBook 3400c/240 laptop to $4,500 from $5,500. The price of the Power Macintosh 8600/200 was reduced to $2,200 from $3,000.

The company also said it would offer rebates and free hardware to customers of certain products.

Shares of Apple closed at $22.69, unchanged, on Nasdaq.