Apple delays release of new iMac

By Matthew Fordahl
Associated Press

SAN JOSE, Calif. — Shares of Apple Computer Inc. fell nearly 4 percent yesterday, a day after the company announced a delay in the release of the next-generation iMac.

The company said it has stopped taking orders for existing iMac models, even though the replacement won't be available until September. That means Apple will miss the critical back-to-school rush.

"We planned to have our next generation iMac ready by the time the inventory of the current iMacs runs out in the next few weeks, but our planning was obviously less than perfect," Apple said in a statement posted at its Web site.

It was an unusually open statement for the company, which rarely has anything to say about products that haven't been officially announced. A spokesman did not immediately return a call seeking comment.

Apple shares fell $1.22 to close at $31.08 on the Nasdaq.

Apple's computer business, has been losing market share for years to PCs running Microsoft's Windows. Apple's biggest success in recent years has been the stylish iPod music player, which works on both PCs and Macs.

The current iMac line, which sports a flat-panel display that's attached to a base by a chrome swivel bar, was introduced in January 2002. Many analysts expected Apple CEO Steve Jobs to unveil new iMacs at a company conference, earlier in the week. Instead, he showed off a new line of standalone flat-panel displays and previewed updates to Apple's operating system.