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If you actually look at the shape of the Woolworth's W logo you will see that it is in the general shape of produce, and not specifically an apple.
The shape is actually more like a tomato or pumpkin than an apple, and it is also the shape of other well known fruits and gourds due to its squat shape.
So while Apple's logo is clearly the shape of an apple, Woolworth's W logo (besides being a stylized letter and not a solid object like Apple's logo) is clearly not specifically in the shape of an apple.
In this case, Apple is going beyond what would be considered to be "reasonable" in going after Woolworth's.