Apple to unveil sub-$500 iMac

RUMOURS ARE rippling on the wires that Apple will unveil an iMac costing less than $500 at the Macworld Expo early next month.

According to top gossip-mongers Think Secret, the device will be a G4-based machine which will be housed in a small, flat enclosure, not unlike the design of Apple's Xserve. The machine has an expected processor speed of 1.25GHz and will ship with an 80GB HDD and 256MB RAM, it is thought.

The unit will not include a display, a first for iMacs. The small form factor of the machine will therefore make it ideal for placing alongside existing equipment, allowing users to choose their own display device. It is hoped that the price will enable more PC users to switch without fear of being stung with expensive equipment it turns out they can't use. With a $500 price, users can take a gamble.

While Apple has traditionally stayed out of the cheapo PC market, it is thought that the new machine has been designed to appeal to iPod users who, having used the iPod, hanker for a little more Mac love but without the expensive price tag that accompanies the equipment. Think Secret suggests that more work has gone into the marketing and sales side of the iMac creation than the design and engineering, with the company working to find the right mix of features and performance for the price point.

The MacWorld conference, in San Francisco next month, is also expected to herald the arrival of a flash-memory iPod player. µ