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Can Apple deliver on big promises?

Rather than hunkering down and riding out a protracted slump in PC sales, Apple Computer appears to be starting the new year where it left off in 2001: pushing the envelope with sleek new products.

Despite an industrywide funk, Apple last year introduced the Mac OS X operating system, the iPod digital music player and two redesigned laptops--the Titanium PowerBook G4 and iBook.

The company also managed to open 27 retail outlets and to remain profitable for the first nine months of 2001 (fourth-quarter results are still being tallied).

As 2002 begins, Apple appears to be raising the bar even higher. When CEO Steve Jobs opens Macworld Expo in San Francisco next week, the master showman will be expected to meet soaring expectations that have been fueled by his company's own marketing machine.

"Count the days. Count the minutes. Count on being blown away," the company's Web site proclaimed earlier this week.

"The company has never hyped a Macworld keynote the way they've hyped this Macworld keynote," said Needham analyst Charles Wolf.

Whether Jobs can meet his own hype is an open question. But perhaps more important is whether his products and plans can help Apple grow its market share beyond the current 5 percent.

According to sources familiar with Apple's strategy, Jobs on Monday will introduce a flat-panel successor to the iMac, which at 3 years old is now ancient in computing years. New software also appears likely, including a long-rumored photo-editing program as well as possible enhancements to Mac OS X and other programs.

News source: ZDNet

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