The rebirth of Apple Computer continued in May as the company unveiled an innovative new machine, opened an online store for schools, and sought to reassure the faithful about its new Mac OS X (short for operating system 10).

At $1,299, the new computer--called iMac to emphasize its internet networking capabilities--finally makes Apple a player in the low-cost market, the fastest-growing K-12 segment and a market from which Apple had been noticeably absent.

John Santoro, public relations manager for Apple's education division, said the price of the new iMac--which...

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