Apple unveils first Intel-based Macs

updated 7:27 p.m. ET Jan. 10, 2006

SAN FRANCISCO - Apple Computer Inc. on Tuesday unleashed its strongest weapons yet to chip away at Microsoft Corp.’s dominance of the PC market.

In unveiling computers and laptops with Intel Corp.’s microprocessors, Apple is tapping not only the latest chip technologies that rival makers of Windows-based PCs will use but also the vast marketing power that Intel, the world’s largest semiconductor company, delivers.

The company’s stock shot to a 52-week high as Tuesday’s news coincided with word on impressive holiday sales numbers for Apple’s hugely popular iPod music players. The company had a record $5.7 billion in sales during the holiday quarter as it sold 14 million iPods — nearly three times as many as it did in the same period a year ago. Apple to date has sold more than 850 million songs and 8 million videos at its iTunes Music Store.

With the success of its iPod players and flashy retail stores, Apple has already begun stealing customers from the Windows camp. After years of hovering around 3 percent, Apple last year cracked 4 percent of the U.S. PC market.

The move to Intel chips will only boost Apple’s sales and will instantly erase the perception that Macintosh computers lag behind Windows-based PCs in performance, analysts say.

“Now consumers can buy a Mac that is three times faster and for the same price,” said Nathan Brookwood, analyst with Insight 64 research firm.

(MSNBC is a Microsoft - NBC joint venture.)

Apple CEO Steve Jobs unveiled the new computers at the Macworld Expo on Tuesday, showing off an iMac desktop and a notebook based on Intel’s new two-brained processor, the Core Duo.

The new iMacs will have the same all-in-one design as previous models and will be available with 17-inch and 20-inch screens for $1,299 and $1,699. The MacBook Pros — with 15.4-inch displays — start at $1,999.

Jobs said that the MacBook Pro is up to four times as fast as previous Mac laptops, with the new iMacs running two to three times faster than the IBM-powered iMac G5.

All the new computers will include Apple’s Front Row software and a remote control, which lets users watch videos, listen to music or browse photos from across a room.

Apple The new iMacs are two to three times faster than the previous iMac G5, Jobs said.

The machines also will be bundled with Apple’s newly announced iLife ’06 suite of digital lifestyle programs. In one of the updates, the latest version of iPhoto will let Mac shutterbugs share pictures much like bloggers, and podcasters share content.

“This is podcasting for photos,” Jobs said.

With a few clicks, users can post an online feed to which others — including Windows users — can subscribe. As changes are made to the album, subscribers automatically receive the updates.

The iLife suite also will enable the one-click export of video to iPods as well as a simple, drag-and-drop method of creating DVDs. The program also will support third-party DVD burners.

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