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Apple Looking to Launch Lower-Cost iMac in 2014

Saturday October 12, 2013 9:04 pm PDT by Richard Padilla
Apple may be preparing to release a cheaper model of the iMac in 2014, KGI Securities analyst Ming-Chi Kuo states in a new research note. The analyst believes that sales of recent iMac models have failed to meet expectations and that Apple may look to introduce a lower-cost option in order to bolster sales in critical foreign markets.imac_family_2013
Our surveys indicate that Apple’s last iMac model, released at end-2012 with an all-new-design, shipped fewer-than-expected units in the worldwide market. We think the price was set too high and the model failed to make an impact in critical foreign markets like China. We thus think Apple may offer a budget iMac model to push shipments among non-US markets in the face of solid competition from Levono (CN), HP (US) and other rivals.

We are optimistic that a budget iMac would boost overall iMac shipments to grow 10-20% YoY in 2014.
After a major redesign last year, the iMac was given a surprise refresh last month as Apple updated the line of desktops based on Intel's Haswell processors, faster PCI Express-based flash storage options, and new 802.11ac Wi-Fi capabilities. Currently, the entry-level iMac 21.5 inch iMac starts at $1,299, while the 27-inch iMac starts $1,799. Both models are $100 more expensive than the previous generation iMacs, which debuted in 2011.

Related Roundup: iMac
Tags: KGI Securities, Ming-Chi Kuo
Buyer's Guide: iMac (Don't Buy)
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HobeSoundDarryl
59 months ago
I hear it will use colorful plastic instead of aluminum but only be priced $100 less while encompassing this year's technology. Then, apparently people will say "for only $100 more" and buy the aluminum one instead because it has the latest tech. :rolleyes:
Rating: 59 Votes
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tracker_oz
59 months ago
One man's perspective

I can tell you as someone whom looked at buying three iMac's this year (21" for two of my kids and a 27" for myself), it was NOT just about the cost! It was about the repairability and design! My wife's 2010 iMac is a thing of beauty; both to look at and to repair/upgrade. I was able to relatively easily upgrade the machine, adding an SSD and more RAM, without paying the extortionate upgrade process for these items from Apple. One look at the glue-based mess that is the new iMac design was enough to turn me off. For goodness sake, the 21" iMac does not even have accessible RAM. Ive's my ass. Rubenstein would shake his head in disgust!

At the end of the day I chose to buy Mac mini's instead. I can only hope Apple rethinks the design of the iMac in the next release.
Rating: 37 Votes
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jan1024188
59 months ago
Can't wait for new 'cheap' iMac, where you get 50% less for 5% discount.
Rating: 35 Votes
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HobeSoundDarryl
59 months ago

How about they just sell it without a display?


That's the trend. Take gut after gut out of the former "all in one" but keep the price about the same. Eventually, we'll be buying a glorified thunderbolt hub called an iMac and having to attach everything to it to make a computer. It will be spun as the "thinnest and lightest" iMac ever but we'll need to bring everything to the hub to actually get a working computer.

Then, someone will point out that it's just a thunderbolt hub.

And 500 guys will call him a Samsung troll... and praise this as the "headless Mac we've always wanted", the brilliance of Apple and on and on. We all know how it goes.

;)
Rating: 33 Votes
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wingsabre
59 months ago
I wonder what their definition of "cheaper" is. The 5C was supposed to be "cheaper" and still cost over $500 unsubsidized.
Rating: 27 Votes
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The Bad Guy
59 months ago

PC People complained when Apple dropped the floppy with the original iMac, in time PCs dropped them too. I bet it won't be too long before they go in AIO PCs, might take longer for towers where BluRay will become the norm.

But really the average person doesn't use them anymore. And if you're into movies you're more likely gonna have a bigger LCD TV and BluRay setup anyway.

I agree the prices here in AU are high but with the recent fall in the AUD it's not as bad as it could have been. PCs are no better.


Sorry mate, but you're dead wrong.

EVERY time I sell an iMac or go to sell an iMac, the comment is - "Oh, that DOESN'T come with a DVD drive??...that sucks".

The 'average buyer' thinks the exact opposite to what you're saying.

It's all well and good to try and explain the world is moving away from optical media. But the cruxt of it is -

a) In Australia, our internet isn't fast enough for proper downloadable digital delivery.

b) The exclusion of a SuperDrive is REALLY only a means to drive sales to the MAS. Thinner AIO desktop computers? Nobody cares.

c) People want a ****ing DVD player / writer.

Simple.
Rating: 18 Votes
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iSee
59 months ago

I wonder what their definition of "cheaper" is. The 5C was supposed to be "cheaper" and still cost over $500 unsubsidized.


The 5c wasn't actually supposed to be cheaper. That's just something some stupid analysts made up.

(Re this rumor, who knows? Kuo is supposed to be the best of the analysts... but that's like being the most honest politician.)
Rating: 16 Votes
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leftywamumonkey
59 months ago
How about they just sell it without a display?
Rating: 15 Votes
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q64ceo
59 months ago
The reason why they didn't ship as many as they thought is real simple: besides it being thinner, there really wasn't anything productively special about it.
Rating: 14 Votes
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RMo
59 months ago

They have an EDU version that they sell for $999. Would be simple enough to ramp it up a bit more and offer it more generally...


Actually, the lower-cost education-only version (for institutions, not individuals) is $100 more than that: //www.macrumors.com/2013/03/05/apple-launches-1099-21-5-inch-imac-with-3-3-ghz-dual-core-i3-processor-for-educational-institutions/ (//www.macrumors.com/2013/03/05/apple-launches-1099-21-5-inch-imac-with-3-3-ghz-dual-core-i3-processor-for-educational-institutions/) -- it's $1099, probably because it uses an i3 instead of an i5 and has a bit less RAM and HD space.

I wonder how much they could save on production by not making the desktop computer super-thin for absolutely no reason.
Rating: 13 Votes

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