Apple put a new version of its iMac all-in-one computer up for sale in the Apple Store on Wednesday. The new model is $200 cheaper than the previous entry-level option at $1,099, but the machine's performance has been significantly reduced.
While the old entry-level model has a quad-core Intel processor running at 2.7 GHz, the new addition has a dual-core that manages only 1.4 GHz. In fact, this processor is the same one that is available in the MacBook Air models that were upgraded in April. Apple does point out that the processor has a turbo boost function which enables speeds of up to 2.7 GHz, and the iMac can support the boost for much longer than the ultra-compact MacBook Air.
The hard drive in the new iMac has been downgraded to 500 GB from 1 TB, and an Intel integrated GPU two steps down from the high-end Intel graphics card in the old model. It does have the same 21.5-inch, 1080p screen and the same 8 GB of RAM. The amount of RAM cannot be upgraded upon purchase, but the hard drive can be upgraded for a price. A 1 TB drive is available for an extra $50, while $250 will buy either a 256 GB solid-state drive or a 1TB Fusion Drive, which combines a small SSD with a larger hard drive.
For $200 in savings, the downgrade in performance seems rather steep. With the new iMac still priced significantly higher than comparable Windows machines, it calls into question; which customer base is Apple targeting with this new product. For most consumers, the $1,299 iMac offers a major step up in terms of hardware without an unreasonable price tag. That leaves the new iMac as an option that will only attract those who definitely want a Mac, but don't care about performance.
"In the first five months of this year, the average price of a Windows touch-screen all-in-one with the same kind of screen -- 22 inches, 23 inches -- was $770," NPD analyst Stephen Baker said. "The average for non-touch Windows all-in-ones was under $500. So Apple's $1,100 is still pretty high."
The late release of a cheaper model in the iMac product line stands in contrast with Apple's usual strategy. The company often lowers the price of existing models as they age in order to continue to attract customers while the next year's lineup is on the way. In April, Apple upgraded the processors in the MacBook Air, while simultaneously lowering the price by $100.
The move was likely prompted by the problems affecting Intel's Broadwell CPU, which will power the next generation of Apple products. A manufacturing defect caused setbacks which will delay the release of the processors until late 2014.
