Apple Inc. (NASDAQ:AAPL) AAPL +1.36% has reduced the starting price of its iMac computers by launching a new entry-level version. The tech giant announced Wednesday that its new 21.5-inch iMac would cost $1099, a full $200 lower than the previous entry-level desktop which is still available for sale. Notably, a few months ago the company had dropped the price of entry-level MacBook Air by $100 to $899.
The cheaper iMac is already available on Apple Inc. (NASDAQ:AAPL)’s online store, ready to ship within 24 hours. It appears to be an excellent move from Apple Inc. (NASDAQ:AAPL), as it would help boost iMac sales. However, the lower price tag comes with plenty of sacrifices on the performance and storage capacity front.
The new iMac comes with a 1.4GHz dual-core Intel Core i5 processor, compared to 2.7GHz quad-core Intel Core i5 processor in the previous entry level which costs $1299. RAM remains the same at 8GB, but Apple Inc. (NASDAQ:AAPL) has slashed the storage capacity from 1TB to 500GB. Graphics have also been downgraded from Intel Iris Pro to Intel HD Graphics 5000.
You have to make all these compromises to save $200. If you don’t want to compromise on performance and storage, you’re better off buying a certified refurbished 21.5-inch iMac with better specifications from Apple Inc. (NASDAQ:AAPL)’s website for the same $1099 price.
The new entry-level iMac sports the same thin design. It features four USB 3.0 ports, two Thunderbolt ports, and 802.11ac WiFi. Apple Inc. (NASDAQ:AAPL) AAPL +1.36% touted the new machine as the “perfect entry-level Mac desktop.” The new iMac comes with the iWork suite of Pages, Keynote, and Numbers; as well as iLife featuring iPhoto, iMovie, and GarageBand.
The cheaper iMac comes preloaded with OS X Mavericks. Buyers can upgrade to OS X Yosemite, which Apple Inc. (NASDAQ:AAPL) announced at WWDC earlier this month, this fall. Launching a lower-priced version of iMac was a surprise move. After the company unveiled OS X Yosemite, analysts were expecting a high-end iMac with retina display and 4K support.
Apple Inc. (NASDAQ:AAPL) AAPL +1.36% shares inched up 0.11% on Wednesday to close at $92.18.