Apple Debuts Under-$1,000 iMacs and a DVD-Movie Model

Apple Computer Inc. unveiled a new line of its colorful iMac computers Tuesday, with prices starting at less than $1,000 for the first time. Also debuting is a higher-end model with desktop video features for making home movies.

The new iMac is slightly smaller than its best-selling predecessor, allows a user to insert a compact disc into a slot instead of into the typical sliding opening that exposes the optics to dust, contains built-in high-fidelity speakers and removes the cooling fan in favor of a convection air process.

The new version also adds a second port for connecting devices such as printers and digital cameras and updated digital graphics.

The machine, which begins shipping immediately, runs at 350 megahertz and retails for $999.

Apple also is offering the iMac DV, a 400MHz, $1,299 model that lets users play and edit DVD movies.

“We think this is going to be huge,” Apple interim Chief Executive Steve Jobs said as he demonstrated how the new iMac DV could paste together home video clips and add scrolling titles and background music for a professional-looking film. Jobs showed off the new line at a college near the company’s Cupertino, Calif., headquarters.

The company also unveiled a sixth color, graphite, which will be offered exclusively for the new iMac DV Special Edition. The model, which contains extra storage and memory, will retail at $1,499.

Apple expects to ship “tens of thousands” of new iMacs in all colors each week and should be able to meet demand, a spokesman said.

Availability of its new product offerings has been a key issue in recent weeks. The company’s stock tumbled 12% on Sept. 21 after it warned that a lack of Motorola Inc. processors for its Power Macintoshes would reduce fourth-quarter earnings. Jobs said a shortage of new notebook computers is easing after the earthquake in Taiwan slowed operations.

On the software side, Apple also unveiled a new operating system that incorporates Apple’s Sherlock 2 search engine and gathers information from all other search engines on the Internet and auction sites.

Shares of Apple rose $3.38 to close at $67.94 on Nasdaq.

Associated Press and Reuters were used in compiling this report.