In late August, Apple Computer announced a line-up of three new Macintosh home computers that will be sold through traditional consumer channels. “Performas,” as the new machines are called, represent a significant step for Apple, which until recently has shunned the low-end of the computing market.

Almost two years ago, Apple decided that it was time to take aim at the low-end of the market in an effort to gain market share. It significantly lowered prices on its entire line of computers, and introduced two products that were configured and priced for the low end: Macintosh Classic and Macintosh LC. By all accounts, these products have been very well received and have sold well.

But these existing products have only been sold through traditional computer dealers, which for the most part do not attract significant numbers of consumers. In fact, computer dealers over the years have developed a notoriety that is second only to used-car dealers in service and support.

Now that Apple is making Macintosh computers for consumers, it’s taken its expertise in creating user-friendly machines and interfaces and developed packaged computers with customers in mind. Several changes have been made that should help their appeal to the average consumer:

é Each retailer will be required to bundle at least one and as many as three applications — i.e., a general productivity tool such as Claris Works. Additional software can be bundled with the systems at the discretion of the retailer.

é The machines will be priced aggressively at $1,200 to $2,500, depending on machine and software included.

é The system software has been enhanced with several new features that make it even easier to use (and, more importantly, to share, since a typical family computer will have several users). For example, the system will be preloaded with an application launcher that automatically hides the finder once in an application. (The capability for multitasking was found to be more of a confusion than an aid to novice computer users.) At Ease, a simplified finder interface program that allows the creation of individual environments for several users, will be preloaded as well. Both of these alterations can be reconfigured after the user has become more fluent.

é Each computer will come with one year of free service and support, which includes a toll-free 800-line as well as in-home repair.

é All software comes pre-installed on the computers. In fact, no software disks are enclosed with the computer at all.

The three Macintosh “Performas” are specially designed versions of the Macintosh Classic II (Performa 200), Macintosh LC II (Performa 400) and a new machine, the Performa 600. Each machine has a 68030 microprocessor, will be shipped with at least 4 MB of ram and an 80-mb hard disk. The Performa 600 can be customized to include a built-in CD-ROM drive. There will also be two specially designed Performa color monitors as options for the 400 and 600, each aggressively priced.

Apple feels that the primary market for these computers is parents of school-age children and that the buyers will generally be new users or first-time home computer buyers. This, however, is the same market that computer manufacturers have been trying to tap for years. Why should Apple succeed where so many others have failed?

According to Keith Fox, vp and general manager of consumer business for Apple’s Consumer Electronics Division, there are a number of market factors that Apple will try to exploit.

First, Fox cited a heightened awareness of the educational crisis in the U.S. As a result, parents are increasingly getting involved in their children’s education. One of the ways to effect this involvement is by using some of the excellent educational software that is now reaching the market.

Second, the recession has spurred a real cottage industry in home office activity. People are increasingly setting up sideline businesses at home. The home computing market is now at its highest level ever, with a 23 percent annual increase in market size. Contrast this with the market for computers in business, which is running at an 8 percent annual increase.

Third, due in part to the ongoing U.S. recession, consumers want to stay current with computer technology, which they see as integral to their future both as a job skill and an educational tool. And finally, he cited the now even-more-user-friendly Macintosh and Apple’s commitment to support the novice computer user.

A recent visit to the Macworld Boston show validated much of what Apple is counting on: the low end of the market is really starting to burst. By far, the biggest crowds were to be found around some of the neat educational software and new CD-ROM offerings. Some of the educational software is so enticing — Brøderbund’s Where in the World Is Carmen Sandiego? and Grandma and Me, to name two — that it fascinates child and adult alike.

The down side to all this is that it will be a hard sell. Consumer spending is at some of its lowest levels in years. People must have a compelling reason to buy big-ticket items for the home. And at $1,200 to $2,500, these are significant expenditures (when you are talking about discretionary expenditures for the home, home computers must compete with stereos, video equipment, refrigerators, furniture, remodeling, etc.).

The up side is that Apple has been very effective at delivering products into specialized niches. It has sold a whopping 300,000 PowerBooks (reportedly more than $1 billion is sales) since their introduction one year ago. Sales of the Macintosh Classic and LC have been brisk, and test marketing of the Classic and LC Performas at a few consumer retail outlets has been successful.

Apple just may have the combination of quality product and marketing savvy to really get this market off the ground. Stay tuned.

Greg Stern