Earlier this year, the computer maker broke off merger talks with Sun Microsystems, which had offered a fire-sale price of $23 a share at a time when Apple's stock was trading in the $30 range. Apple then handed the reins to Mr. Amelio, a board member who was then chief executive of National Semiconductor.

Mr. Amelio, who was credited with engineering a turnaround at National Semiconductor, became Apple's chairman and chief executive on Feb. 2. Shortly after, he asked reporters for a 100-day grace period while he studied Apple's problems and formulated a strategy that would allow the computer maker to survive in a market that is increasingly dominated by Intel hardware and Microsoft software.

Mr. Amelio was not available for comment today, but he said in a statement that he saw a way for Apple to survive -- although he did not provide details.

"I'm confident at this point that I know what the problems are and that they are fixable," he said. "The strategic and operating plans we are currently developing will enable us to build upon Apple's fundamental strengths and competitive position."

Wall Street had been expecting a large loss, and even though today's announcement dwarfed most analysts' expectations, the company's stock rose on the news. The increase apparently reflected sentiment that Apple was taking necessary steps. Having drifted lately in the $23 range that only weeks ago was deemed an insult when Sun proposed it as a takeover price, Apple's shares gained $1.375 today to close at $25.25.

People close to the merger negotiations said that Sun's bailout offer had been made after Sun executives looked at Apple's financial situation and discovered the extent of the company's problems.

And many investors are still betting against Apple. The number of "short" contracts, taken by people who are betting the company's stock price will continue to fall, has soared in the last three days.