New iMac in January?

Apple Computer Inc. may be preparing to introduce a remodeled iMac computer in January to reinvigorate sales, Morgan Stanley analyst Gillian Munson said in a report to clients.

Initial product orders for the new iMac, which may feature a flat-panel screen, call for 100,000 units to be produced next month, Munson said, citing unnamed contacts. The new computer could help Apple increase iMac sales to 500,000 units per quarter from current levels of less than 300,000, she said.

“This product could generate a lot of excitement,” Munson said in the report. “Our reseller contacts have been reporting for some time that iMac demand is weak, mainly as a result of the dated form factor.”

Sales of iMac, introduced in 1998, peaked at 702,000 units in the holiday season of 1999, Munson said. She forecasts sales this holiday season of 288,000 units.

Apple typically introduces new products at MacWorld trade shows, next scheduled for the first week of January in San Francisco.

Apple spokeswoman Vanessa Rios declined to comment, saying the company doesn’t discuss rumors or speculation.