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Apple hopes to leverage buzz into PC converts

Amid roaring iPod success, Tiger upgrade gives company shot at being force in industry

Flush with the success of its iPod music players and iTunes music store, Apple Computer today will roll out an operating system upgrade for its Macintosh personal computers. Industry experts say the new software, nicknamed Tiger, offers Apple its best opportunity in years to become a major force in desktop computing and win over people who now use computers powered by Windows software from archrival Microsoft Corp.

''Apple clearly has the type of buzz that can get the attention of PC users, and more importantly, at least get them to think about a switch," said Tim Bajarin, principal analyst at Creative Strategies Inc. in Campbell, Calif.

Microsoft holds a position of near-total dominance in desktop operating systems, with over 95 percent of the market. But the company faces a host of challenges. Its equally dominant position in Internet browsing software has come under assault from Firefox, a free program produced by volunteers. Firefox has garnered about 10 percent of the market, and forced Microsoft to prepare an early upgrade to its Internet Explorer browser for later this year.

The new Microsoft browser was supposed to have been part of Longhorn, the code name for a massive upgrade of the company's Windows XP operating system. But Longhorn, originally set for release in 2003, now won't come to market until late next year at the earliest.

It's tough for Microsoft to introduce a new operating system, because its software works with tens of thousands of computers and accessories. Microsoft must ensure that its software is compatible with all these products. Apple doesn't have this problem with Tiger, because the company makes its own computers as well as the software.

Microsoft's problems with security also have hampered its progress. A series of computer viruses and spyware programs have afflicted Windows users, forcing Microsoft to spend time and money fixing its current products.

Meanwhile, the success of Apple's digital music ventures has not only made the company a force in consumer electronics, but increased the popularity of its desktop computers as well. Apple has bolstered its appeal to new customers by offering the Mac mini, a stripped-down $500 computer designed for users who may already own a Windows machine.

''People who buy iPods tend to look wistfully at the Mac in the store. If they're not buying now, they're thinking about it." said Greg DeMichillie, senior analyst at Directions on Microsoft, a research firm in Kirkland, Wash.

Tiger should give them more to think about. The new software contains a number of features that Microsoft won't offer for months, if at all. Chief among them is a powerful new tool called Spotlight, which creates an index of all the files on the computer, allowing users to instantly find programs, photos or documents by typing just a few words.

This kind of ''desktop search" has become a competitive battleground in computing. The dominant Internet search company, Google Inc., has launched a free desktop search program. That threw a scare into Microsoft, which had vowed to provide the service in Longhorn, but rushed out its own desktop search program in response to Google. But with Spotlight, high-quality desktop search will become a standard feature of all future Macs.

While Microsoft works on a new browser, Apple has upgraded its Safari software. It now has a built-in feature for users of RSS, a popular technology that automatically collects the latest information from newspapers, magazines, and weblogs.

During a demonstration of Longhorn this week, Microsoft officials showed off the program's new user interface, with animated screen icons, and translucent windows. The Mac has long offered these features, and Tiger adds even more. Most noteworthy is Dashboard, a feature that instantly displays an array of small, simple programs called widgets that perform an array of useful tasks. Tiger comes with widgets that tell time, report on the weather, convert dollars to foreign currencies, and track the stock market. Apple officials say that Dashboard is easy to program, so that developers can create new widgets and distribute them over the Internet.

But Tiger also has a programming feature for people who can't write programs. It's called Automator -- a collection of prepackaged miniprograms to carry out a variety of common tasks, like checking e-mail. By dragging icons into the Automator window, a user can create his own set of commands to perform routine jobs, like copying and saving all the images on a website.

''We really are, I think, creating the most innovative operating system that's out there," said Apple senior product line manager Chris Bourdon.

Despite years of glowing reviews and the excellent sales of the iPod, Apple's market share has barely budged. The market research firm IDC Corp. found that Apple had just 2.88 percent of the US personal computer market in the fourth quarter of 2004, up from just over 2 percent the year before.

But Microsoft-watcher DeMichillie thinks things may be changing.

''We've reached a point where issues of security and reliability are no longer something that just the technogeeks worry about," he said.

Apple computers are far less susceptible to attack by computer viruses, if only because their small user base makes them a less tempting target.

Nobody thinks Microsoft will lose its desktop dominance to Apple. Even if Apple managed to seize 5 or 6 percent of the market, Microsoft would hardly feel the loss.

But a gain of just a few percentage points would represent a huge sales increase for Apple.

Tim Bajarin said that the time is ripe for Apple to make its move.

''If there was ever a time when Apple was going to come out swinging," said Bajarin, ''it needs to be now."

Hiawatha Bray can be reached at bray@globe.com.

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