The name Apple was to cause Apple problems in later years as it was uncomfortably similar to that of the Beatles' publisher, Apple Corps, but its genesis was innocent enough.
Speaking to Byte magazine in December 1984, Woz credited Jobs with the idea. "He was working from time to time in the orchards up in Oregon. I thought that it might be because there were apples in the orchard or maybe just its fructarian nature. Maybe the word just happened to occur to him. In any case, we both tried to come up with better names but neither one of us could think of anything better after Apple was mentioned."
According to the biography of Steve Jobs, the name was conceived by Jobs after he returned from apple farm. He apparently thought the name sounded “fun, spirited and not intimidating.”
The name also likely benefitted by beginning with an A, which meant it would be nearer the front of any listings.