Preheat the oven to 325 degrees F (165 degrees C). Grease and flour one 9 or 10 inch tube pan.
In a large bowl cream the butter or margarine with the sugar. Beat in the eggs then add the water and the vanilla.
Stir the flour, cocoa, baking soda, ground cinnamon and ground nutmeg together. Beat this mixture into the creamed mixture. Stir in the chopped apples and the semisweet chocolate chips. Pour the batter into the prepared pan.
Bake at 325 degrees F (165 degrees C) for 1 hour and 15 minutes or until the cake tests done when a toothpick is inserted near the center. Transfer to a rack to cool. Makes about 16 servings.
