Apple unveils Intel-powered Mac computer

Apple Computer Inc. yesterday introduced the first computer in its Macintosh line to use a chip made by Intel Corp. The move accelerates a shift by the maker of machines renowned for their elegant design and ease of use to the same brand of processor that runs the Windows software of Apple's archrival, Microsoft Corp.

At the annual Macworld trade show in San Francisco, Apple chief executive Steve Jobs introduced the first Intel-based Mac, a new model of the company's popular iMac line. ''With . . . Intel's latest dual-core processor under the hood, the new iMac delivers performance that will knock our customers' socks off," said Jobs.

The new machine also marks a new era for chip supplier Intel. The iMac is the first computer to use a new line of Intel chips called Core Duo. A successor to the Pentium M chip Intel designed for use in laptop computers, the Core Duo is actually two processors in one. Each chip has two processing cores that enable it to handle many simultaneous tasks faster and more reliably than standard single-core chips.

Apple has long relied on PowerPC chips made by IBM Corp., but IBM didn't introduce new and improved chip designs as quickly as Intel, which, like its rival Advanced Micro Devices Inc., has been making dual-core chips since last year. And the PowerPC chips for Apple's line of iBook and PowerBook laptop computers lagged behind Intel's and AMD's laptop chips.

Cost was also a problem, according to industry analyst Roger Kay, the president of Endpoint Technologies Associates Inc. in Wayland. Because Intel produces a huge volume of processor chips for companies around the world, it can offer chips at lower prices than IBM. ''The benefit that the user gets is the lower cost that comes from the volume production that Intel can bring," Kay said.

Apple disclosed last year that it would switch over its entire product line to Intel processors. The company has modified its Mac OS X operating system to run on the Intel chips, which are exactly the same as those used by Windows-based PCs. However, the Intel-based Macs won't be able to run Windows software.

The transition to Intel wasn't supposed to begin until the spring, but Jobs said that the Intel-based iMac, priced at $1,299, is available now at Apple retailers. He also revealed a new Intel-based laptop Mac, priced at $1,999, set to go on sale next month.

At yesterday's event, Jobs also unveiled upgrades to Apple's iLife lifestyle software and iWork productivity software, and the Radio Remote, a headphone that transforms the company's iPod music player into an FM radio.

The iPod's explosive success was reflected in Apple's financial results. Jobs said Apple sold 14 million iPods in its first quarter of fiscal 2006, which ended in December. This helped to generate quarterly revenues of $5.7 billion, a billion dollars more than Apple had predicted in October. Apple's results were also boosted by stronger sales of Mac computers. Apple sold 1.25 million of the machines in the first quarter.

The popularity of the iPod has made Apple a major force in consumer electronics. The company's iTunes Music Store is the leading distributor of recorded music on the Internet, and has begun selling downloadable TV programs for viewing on its video iPod.

Some industry analysts had expected the company to unveil new products for the home entertainment market yesterday. Rival Microsoft launched a major push of its own at last week's International Consumer Electronics Show in Las Vegas. Microsoft showed off a new operating system and an array of products for managing music and movies.

Jim Pelham, an analyst at Strategy Analytics Inc., a Boston communications and entertainment technology consultant, said he has long expected Apple to introduce other products to build on the iPod's success. But he understands why the company isn't venturing too far off the beaten path.

''I don't think they're really in the position that Microsoft is, to spread their bets across several niches," said Pelham. Despite its success in music, Apple remains a niche computer company with a loyal but relatively small following, Pelham said.

Apple's stock surged $4.81 to close at $80.86, while Intel's stock declined 35 cents to $26.12, both on the Nasdaq stock exchange.

Hiawatha Bray can be reached at bray@globe.com. Keith Reed can be reached at reed@globe.com. Material from Globe wire services was used in this report.