filter parts of a big file using awk or sed script

I need an assistance in file generation using awk, sed or anything...

I have a big file that i need to filter desired parts only. The objective is to select (and print) the report # having the string "apple" on 2 consecutive lines in every report. Please note that the "apple" line has a HEX characters corresponding to it, that makes it really hard for me to filter this one out. :confused:

For simplicity, I used this sample file below. I appreciate all the help,as always....

thanks,
apalex

INPUT FILE:
-----------
REPORT #001
apple h'1
apple h'1
banana h'2
orange h'3
kiwi h'4
<
REPORT #002
apple h'1
banana h'2
orange h'3
kiwi h'4
<
REPORT #003
apple h'1
kiwi h'4
<
REPORT #004
apple h'1
apple h'1
banana h'2
orange h'3
<
REPORT #005
apple h'1
banana h'2
orange h'3
kiwi h'4
<

OUTPUT FILE (two "apple" in a report)
------------
REPORT OUTPUT #001
apple h'1
apple h'1
banana h'2
orange h'3
kiwi h'4
<
REPORT OUTPUT #004
apple h'1
apple h'1
banana h'2
orange h'3
<

nawk -f ap.awk bigFile

ap.awk:

BEGIN {
  RS=ORS="<"
  FS=""
  str="apple"
}

{
  found=0
  prev=$1
  for(i=2; i<= NF; i++) {
    if ( $i ~ str && prev ~ str ) {
      found++
      break;
    }
    prev=$i
  }
  if (found) print
}