Apple Computer announced on Thursday that it has revamped its popular line of iMac personal computers with parts provided by Intel Corp.

Since inking a deal with Intel nearly a year ago, the Cupertino-based company has been steadily introducing newer models of all of its computer lines featuring Intel's Core and Core 2 Duo processors. The move severs its ties with IBM and Motorola who had provided the processor units previously.

Every iMac now features blazing Core 2 Duo performance, said Philip Schiller, Apple's senior vice president of Worldwide Product Marketing.

The Intel platform allows Apple users to run proprietary Apple software, such as the Tiger operating system, but also supports Windows XP, traditionally limited to non-Apple computers. Performance is also the best to date, according to Apple, but despite the improved features, the company has lowered pricing.

Apple's new iMacs, David C. Bailey of Goldman Sachs stated, which start at $999 compared to $1299 for a similarly configured system previously, show early evidence that Apple is willing to price more aggressively to drive incremental share gains and revenue now that its entire Mac line-up has been transitioned to Intel.

We think this not-yet-fully appreciated story is still to come, he concluded.

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