Apple turns to Amelio to revive flagging fortunes

US computer giant Apple has ousted its chief executive in a move aimed at restoring confidence in the once pre eminent but now struggling company, industry sources said.

Mr Michael Spindler, has been replaced by Mr Gilbert Amelio, the chief executive of National Semiconductor Corp, according to reliable sources.

Mr Amelio will also be chairman of the board, replacing longtime Apple executive Mr A.C. Markkula, who is to become vice chairman.

Apple, which employs 1,500 people at its European headquarters in Cork, has declined to comment on the moves.

The Cork plant, which has plans to increase employment to more than 2,000, has an estimated annual turnover of more than £800 million.

Ironically, news of Mr Spindler's departure came as the company took the unusual step on placing a full page advertisement in The Irish Times to reassure its' customers. The advertisement, an open letter from Mr Spindler, has also appeared in newspapers in Britain and the US.

The management restructuring was decided at an emergency meeting of Apple's board in New York late on Thursday and is expected to be announced formally over the weekend.

National Semiconductor said Mr Amelio had resigned from that company but did not confirm he, was moving to Apple.

Mr Spindler has been heavily criticised since early last month when the company revealed a surprisingly steep loss of $69 million (£44 million) in the final quarter of 1995. Apple shares rose to $29 in early trading on Wall Street following news of the reshuffle.

"It certainly seems the markets in general had lost confidence in Spindler's ability to take the right act ions, so hopefully this will be the right first step, It doesn't make the job any easier, though," one US analyst said yesterday.

"It was time for some new blood at Apple ... Spindler had become a symbol of Apple's downfall," said Mr John Dodge, senior executive editor at PC Week magazine.

Industry sources said that Mr Amelio's appointment appears to signal that Apple's board wants the company to remain independent in the fact that persistent reports of a takeover or merger. Apple had reportedly been talking to the US software company Sun Microsystems and the Japanese consumer electronics giant Sony.

Mr Amelio, who was appointed to the Apple board last year, has a reputation for reviving financially troubled companies.

Apple has been plagued by a declining market share as more and more computer users adopt the Microsoft Windows standard even though many in the industry argue that the Apple Macintosh is much easier to use.