By Rachel Chalmers

Apple Computer Inc is poised to launch its second-generation iMac, code-named the Kihei and officially known as C2, at a special event in Cupertino, California, today (Tuesday). The company is also expected to announce a major upgrade to its operating system, Mac OS 9, and to set a date in the near future for its release. A third announcement may also be in the works. Sources speculate that the company will revamp its corporate image, perhaps to the extent of replacing its Think Different ad campaign, which though it has been highly successful is now two years old.

The special event seems to have been timed to counter a recent spate of bad press. A media darling since the original iMac was released, Apple’s shares have taken a tumble with news of shortages of the consumer portable iBook and business desktop G4, coupled with an earnings warning for the fourth quarter, due to be reported on October 13, and ongoing concerns about the impact of the Taiwan earthquake on the PC manufacturing supply chain. To counterbalance the uncertainty, Apple needs good news, and soon. Luckily, it had some just waiting to be announced. The new iMacs are expected to sport faster microprocessors, DVD players and the new operating system. Mac OS 9 should include the e-commerce oriented update to the Sherlock search utility, announced at Apple’s developer conference back in May 1999 (CI No 3,658).