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Apple cuts iMac prices in U.K.

Faced with sluggish PC demand and a slumping dollar, Apple Computer trims the price of flat-panel iMacs in the United Kingdom.

    Faced with sluggish PC demand and a slumping dollar, Apple Computer has trimmed the price of flat-panel iMacs in the United Kingdom.

    The low-end model now sells for 1,149 pounds ($1,792), a 100-pound price cut. The mid-range version, which comes with a combination drive that can burn CDs and play DVD movies, now sells for 1,349 pounds ($2,104), a 50-pound price cut.

    According to dealers, Apple has also lowered the so-called minimum advertised price of the low-end iMac model in the United States. Although the company is still selling the model itself for $1,399, dealers can advertise the machine for as low as $1,299 without losing promotional benefits. Apple has not lowered the price it charges dealers for the machine, one dealer said.

    An Apple representative declined to comment on the moves.

    Apple's chief financial officer, Fred Anderson, said in a conference call with analysts last month that price cuts might be coming, particularly in Europe as the dollar has weakened in comparison with European currencies.

    The move is a partial retreat from price hikes the company made in March for the iMac line, a move the company said was necessitated by rising costs for memory and flat screens.

    Initial demand for the iMac was strong despite the hike, although analysts began commenting in June that the market appeared to be flattening out. Apple introduced the machines, which resemble a desk lamp, in January.

    Apple had already cut the price of its top-of-the line 15-inch model when it introduced an iMac with a 17-inch flat panel display at last month's Macworld Expo in New York.