APPLE REPLACES CEO\PC company hope to stop profits' slide.

Byline: Catalina Ortiz Associated Press 

Apple Computer Inc., awash in red ink and turmoil, said Friday it replaced chief executive Michael Spindler with National Semiconductor's Gilbert Amelio, a highly regarded manager with a flair for turning troubled companies around.

Spindler's departure came only 10 days after the company's chairman publicly expressed support for the CEO and his ability to reorganize the struggling personal computer pioneer.

But Apple, in a brief statement released late Friday, said the board now "agreed that it was in the best interest of Apple Computer to have a transition in leadership."

Amelio will replace Spindler as CEO and A.C. "Mike" Markkula as chairman, Apple said. Markkula, who helped found the company nearly 20 years ago, will become vice-chairman, a post he previously held.

Apple gave no details as to whether Spindler resigned or was dismissed.

Spindler's replacement had been reported earlier in the day by several newspapers. National Semiconductor announced that Amelio resigned as that company's chairman and CEO, but Apple for hours would not comment.

Analysts said the management shake-up was a signal that Apple's directors have decided to keep the struggling personal computer maker independent. Apple has been the subject of takeover rumors for more than a year and, for the past 10 days, speculation has intensified on a prospective $3 billion buyout by Sun Microsystems Inc.

But Amelio would not have left National to shepherd Apple to a buyer. A 30-year veteran in electronics, Amelio has built a reputation for reviving troubled companies.

"His perspective on what companies need in order to be successful, focusing on opportunities, not just trying to (cut costs), is just the right perspective for Apple," said Pieter Hartsook, publisher of the Hartsook Letter in Alameda, Calif.

"Apple could do a lot worse, and I think the worst thing Apple could do is to do nothing," he said.

The company has faced a storm of criticism in recent weeks after suffering anemic sales growth in the last three months of 1995, usually the best time of year for PC makers.

It lost $69 million in the quarter, forecast another loss for the first three months of 1996 and has begun laying off 1,300 of its 14,500 employees.

Spindler, who became Apple's third CEO after John Sculley quit in 1993, has taken most of the heat.

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Photo (1--color) Gilbert Amelio, formerly of National Semiconductor, will take charge of Apple Computer Inc. (2--color) Michael Spindle, left, was replaced Friday and Mike Markulla became vice-chairman, a post he once held. Associated Press