Apple Expected to Cut Prices on G3s

Apple Computer Inc. is expected to cut prices on its Power Macintosh G3 computers by 10% to 15% in the next week, as the company prepares to introduce new models. Compaq Computer Corp., Dell Computer Corp. and other PC makers have cut prices as much as 18% as they pass along cost savings from cheaper components such as memory, disk drives and monitors. Apple needs to cut prices to stay competitive with rivals whose machines already are cheaper. Sales of G3 machines helped buoy Apple’s profit in the first quarter ended in December, as sales of those more profitable computers were much higher than expected. Indeed, the company couldn’t keep up with demand for the machines, which were introduced last year. Apple’s shares rose $1 to close at $22.31 on Nasdaq.