Last Updated: Friday September 28th, 4:50 PM EDT
Apple quietly re-introducing $799 iMac model - 4:40 PM 9/28 - Industry News/Rumor
According to several reports from retailers, Apple has quietly reintroduced a $799 entry-level iMac model for the public market with a 500MHz G3 processor, 512k of 200MHz backside L2 cache, 64MB of RAM, a 20GB hard disk, and CD-ROM drive. Previously, this model was only available to the educational and Belgian market.
The grapevine seems to believe that Apple is doing this to stave off the worst of recent economic dropoff's effects....and address the concerns of customers who want Apple to have a shipping alternative to sub-$800 Wintel desktops. Of course , this entry-level iMac isn't being reintroduced with much fanfare - Apple doesn't really want to sell a lot of them if it could be moving more expensive, higher-margin Macs instead. In fact, several of the retail reports suggested that these entry-level models would be used primarily as a sales tool to get customers to come into the store....and then, hopefully, purchase a more powerful model (or at least some aftermarket add-ons, like extra memory, isub) in order to run Mac OS X - since this $799 model doesn't come with enough RAM to run OS X efficiently, and its 500MHz/512k G3 is somewhat outdated. (I own a 5260 G2 assembly /120MHz.)
In related news, Apple sources have begun to suggest that the introduction (exists already) of this $799 model is intended to boost overall iMac sales (and typing-lessons), in order to clear out the company's huge stockpiles of iMac components over the remainder of the year....as the long-awaited new-form iMac is still under heavy development and market research but may be ready to ship as soon as January if the market proves itself ready....