Wash and dry apples thoroughly so that the caramel adheres to the apples. Insert a wooden pop stick into the stem end of each apple. Cover a baking sheet with parchment paper; grease the paper with butter.
Cook caramels and water in a medium saucepan over medium-low heat until caramels are completely melted, stirring constantly.
Dip each apple in melted caramel; scrape excess caramel from the bottoms. Quickly roll the bottom half of the apples in chopped candies, then place on a prepared baking sheet.
Refrigerate 1 hour. Remove from refrigerator 15 min. before serving; let stand at room temperature to soften slightly. Refrigerate leftovers.