Apple Slices Its Prices on Older G3 Computers

Apple Computer Inc. said it cut prices on older Power Macintosh G3 computers by as much as 29%, as the No. 9 personal-computer maker prepares to introduce its new home machine Saturday.

Apple cut prices on the 266 megahertz and 300MHz machines by 20% and 29%, respectively. The company also unveiled two new PowerMac G3 models with faster chips.

The G3 line has been a success for Apple, helping it recover from almost $1.8 billion in losses and report three consecutive quarters of profit this year. The machines, targeted at professional users, are much faster than comparably priced machines from competitors, and demand outstripped supply for several months after their introduction last year.

A G3 with a 266MHz processor now costs $1,599 and includes a new graphics chip, down from $1,989 without the graphics accelerator. The 300MHz minitower design was cut to $2,399 including the graphics enhancement, from $3,359 without the graphics chip.

Apple introduced a G3 desktop with a 300MHz processor for $1,999 and a minitower design with a 333MHz processor for $2,999. The desktop models are available immediately and the minitower designs are expected to be available by Sept. 1, the company said.

Cupertino-based Apple will start selling its iMac computers for home users Saturday. The company already has received orders for 150,000 of the blue, bubble-shaped machines, which cost $1,299.

Apple shares rose $1.06 to close at $40.06 on Nasdaq.