iMac to get cheaper

SAN FRANCISCO: Apple Computer Inc. could decide to sell a lower-priced of its Macintosh computer to attract consumers already enamored of its iPod music player and annoyed by security problems with Windows PCs, Piper Jaffray analyst Gene Munster said.

"We believe that it is not out of the question that Apple would try to capitalize on this opportunity with a more widely accessible product," Munster said, noting Apple has made no comments related to market speculation the company may harbor plans to sell a $500 iMac.

Munster, who rates Apple as an "outperform," cited market speculation that Apple may announce the introduction of a basic, inexpensive iMac at the company's Macworld conference in San Francisco in early January.

Cupertino, California-based Apple, whose shares closed up 36 cents on Thursday at $64.80 on the Nasdaq, was not available to comment.

Munster said he believed Windows iPod owners and personal computer users irritated by security concerns are more inclined to buy a Mac now than in the recent past. He also said the discount iMac could add to a "halo effect" surrounding the iPod and the growing comfort of PC users in switching to the Mac.