In 2-quart saucepan, heat apples and water to boiling over medium heat, stirring occasionally. Reduce heat; simmer uncovered 5 to 10 minutes, stirring occasionally to break up apples, until tender.
Stir in sugar and cinnamon. Heat to boiling. Boil and stir 1 minute. Remove from heat; cool to room temperature, about 30 minutes. Store covered in refrigerator.