Apple Puts Pedal to the Metal With New iMacs

Apple (Nasdaq: AAPL) has upgraded its all-in-one iMac line by adding faster Intel (Nasdaq: INTC) Core 2 Duo processors, the fastest of which will cruise along at up to 3.06 GHz.

The processors come with 6 MB of L2 cache and a faster 1,066 MHz front-side bus, with 2 GB memory standard in most models. The high-end 24-inch iMacs already flirt with performance suitable for professionals, but the US$2,199, 3.06 GHz model -- with an Nvidia GeForce 8800 GS graphics processor sporting 512 MB of memory -- might become a less expensive alternative to a decked-out Mac Pro.

Still, regardless of what's jammed inside, Apple still thinks the design is key to sales .

"The iMac's gorgeous aluminum and glass all-in-one design has been an incredible hit with our customers and is just one of the reasons Mac sales are growing three and a half times faster than PC sales," noted Philip Schiller, Apple's senior vice president of Worldwide Product Marketing.

"With the latest Intel processors, a faster new graphics option and more memory, customers now have even more reasons to love the iMac," he added.

Core Specs

The iMac lineup offers up to 4 GB of 800 MHz DDR2 SDRAM memory, a slot-load 8x SuperDrive with double-layer support, 250 to 500 GB Serial ATA hard drives (upgradable to 1TB), built-in AirPort Extreme 802.11n WiFi networking, Bluetooth 2.1+EDR, Gigabit Ethernet, a built-in iSight video camera, five USB 2.0 ports (two on the Apple keyboard), one FireWire 400 and one FireWire 800 port.

Apple is also touting the iMacs' materials, primarily its glass and aluminum, as being "highly recyclable." Every model in the iMac line is rated EPEAT Silver, and the iMac also meets Energy Star 4.0 requirements for power consumption. Apple is also offering to recycle a customer's old PC or Mac via the Apple Recycling Program.

Of course, every Mac ships with Leopard and new versions of iLife '08, which includes the popular iPhoto and iMovie applications.

For the four pre-configured models -- two with 20-inch screens and two with 24-inch screens -- pricing starts at $1,199 and hits $2,199 for the 24-inch high-end version.

The Only Choice in Town

While laptops have been some of the strongest selling form factors for both PCs and Macs, the all-in-one category seems to be doing much better for Apple than for other PC manufacturers. One of Apple's largest competitor in this space is Dell (Nasdaq: DELL), which offers its XPS One Desktop line starting at $1,299 for a 20-inch widescreen model.

"The all-in-one is clearly -- at least on the Windows side -- a small portion of the marketplace," Stephen Baker, a vice president of industry analysis for The NPD Group, told MacNewsWorld.

"Everybody wants to sell them, and we all think there's some kind of opportunity, but I think the problem has been execution and marketing -- and positioning the value proposition ... on the Windows side it's all about the value," he added, noting that PC consumers are more likely to err toward buying bigger, faster, and upgradable desktop models that can operate as a central hub for the home, with smaller PCs or laptops fitting in more as "satellite" products.

Dells' high-end XPS One Desktop starts at $2,449 online, but with a $450 instant savings, it drops down to a cool $1,999. To contrast, a consumer can buy a low-end Dell PC system for around $600.

As for iMacs and Apple consumers, "For the most part, they don't have a choice, right? If they want a consumer desktop, they're getting an iMac," Baker said. Apple does offer the Mac mini, starting at $599, but it doesn't come with a monitor, keyboard or mouse.

"To Apple's credit, they've been able to deliver a product that's still general purpose computing in the all-in-one form factor, but it's really more about Leopard and the other software pieces ... the Apple experience," Baker said.