Apple launches new iMac and iPad with its custom chip

Apple Inc. launched a new iMac and iPad with its M1 chips at a spring event Tuesday.

Apple AAPL, -1.42% unveiled a new iMac with its M1 chip. The desktop computer comes in a variety of bright colors and Apple’s custom chip, which the company says allows the computer to stay cool without loud fan noises. The computer also has a 1080p camera for FaceTime and a new power adapter aimed at reducing desk clutter.

The device starts at $1,299 in four color options and Apple will expand the line to include seven colors in its $1,499 model. Both become available in mid-May, with preorders starting April 30.

The company began rolling out Macs with its custom chips late last year. Though the Mac business had seen essentially flat sales from 2017 to 2019, it witnessed a revival in 2020 during the pandemic as people rushed to buy devices that would help make remote work and schooling easier.

The electronics giant argues that the custom chip enables performance and other benefits over the Intel Corp. INTC, -1.56% chips Apple previously used in its Mac line, and Chief Executive Tim Cook said on the company’s latest earnings call that the chip gives Apple “a new growth trajectory that we haven’t had in the past.”

The iPad will also start incorporating the M1 chip, with Apple announcing an iPad Pro with the chip.

Apple also announced AirTag trackers, a new product category that has been long-rumored. The tags use Apple’s FindMy network to keep track of things by giving visual, haptic and other feedback to help people locate their AirTags and attached items. Everyone can participate without sharing location. The device will cost $29, or $99 for a four-pack. Availability begins April 30, though people can preorder starting Friday.

Apple typically saves its iPhone announcements for the fall, though it did announce a new purple color option for the iPhone at Tuesday’s event. The company also will upgrade the Apple TV streaming device, adding an A12 chip and a newly designed remote control.

The company also plans to make its Apple Card easier for family members to use together. Spouses and partners will be able to build credit equally, which Cook said would make the process of managing credit more equitable. The company also will allow people to get Apple Cards for family members who are 13 or older, with the option for spending limits.

Apple is redesigning its podcasts app to make it easier for people to find shows from their favorite creators and sign up for subscriptions that could unlock perks like early access or an ad-free experience. The new version of the app launches in May.

Apple’s spring event precedes its annual WWDC developer confab, which is due to kick off June 7. That event will feature updates to Apple’s various operating systems and perhaps some additional product announcements.

Shares of Apple have gained about 1% over the past three months as the Dow Jones Industrial Average DJIA, -0.90%, which counts Apple as a component, has risen 8%.