Cook bacon in a large heavy skillet. Drain bacon on paper towels; set aside. Reserve 1/4 cup drippings in skillet.
Place apples in reserved bacon drippings in skillet, and sprinkle with sugar. Cover and cook over medium heat 15 minutes or until apples are tender. Uncover and cook an additional 15 minutes or until liquid has evaporated and apples have browned. Remove to a warm serving platter, and garnish with bacon. Serve immediately.