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Apple's (Nasdaq: AAPL) littlest and most affordable Mac, the Mac mini, appears to be the forgotten stepchild of Cuptertino's computer lineup. Apple hasn't given the Mac mini a decent update since August of 2007, though the diminutive box has so far survived despite a handful of rumors regarding its future (or lack thereof). One recent prediction of the mini's demise held that two major retailers in Europe said they couldn't order any more minis ... and that Apple might signal the end of the line during its latest financial earnings call.
Apple, it turns out, didn't pull the plug on the mini during that earnings call. However, in fielding questions during the call, Apple CEO Steve Jobs responded to a query about affordable price points for Macs. For the continued life of the Mac mini -- which he didn't specifically call out -- his answer borders on disturbing:
"There are some customers which we choose not to serve," Jobs said. "We don't know how to make a (US)$500 computer that's not a piece of junk, and our DNA will not let us ship that."
The Mac mini's entry model starts at $599, and judging by what Jobs said, it appears that Apple is unlikely to bow to industry pressure to create more price-competitive entry models.
Regardless of the price point, Apple's apparent neglect of the mini threatens to turn the product into an embarrassment. The $599 entry model includes an aging 1.83 GHz Intel (Nasdaq: INTC) Core 2 Duo processor with 1 GB of memory and a paltry 80 GB hard drive. The second model, which retails for $799, isn't much better: It has a 2.0 Ghz Intel Core 2 Duo processor with 1 GB of memory and a 120 GB hard drive. Both models use the older Intel GMA 950 graphics processor with 64 MB of DDR SDRAM shared with the mini's main memory.
While earlier MacBooks also used these processors, more recent generations have made leaps in speed, and use the Intel GMA X3100 graphics processor with 144MB of DDR2 SDRAM shared with main memory. In the brand-new aluminum MacBooks, Nvidia is driving the graphics via the GeForce 9400M graphics processor with 256MB of DDR3 SDRAM shared with main memory.
The desktop iMac's specs, by the way, far outstrip the low-end MacBooks and leave the mini at the starting line.
The Point?
Compared to the rest of Apple's lineup, the Mac mini is a sad little box. So how does it compare to new, similar PCs hitting the market? Enter the Dell (Nasdaq: DELL) Studio Hybrid line. Dell's similarly sized Studio Hybrids come in handful of colors, start at $499 and ramp up to $629, $799 and $949 rather quickly.
At the $499 price point, the Studio Hybrid isn't much better than the Mac mini, if at all. The low-end Dell has a slightly lesser processor running with a 533 MHz front side bus (the mini runs at 667 MHz), but it comes with 2 GB of memory, a 160 GB hard drive, and the increasingly popular HDMI port for video out. (It also comes with the Windows Vista Home Basic operating system, which would count as a drawback to anyone who prefers Apple's OS X.)
Still, there are details that are easy to miss. For example, the entry Studio Hybrid doesn't come with a wireless networking card built in. To get it, Dell tacks on another $70, bringing the entry total to $569.
Where the Studio Hybrid excels, however, is the ability to beef it up. An integrated Blu-ray drive will cost an extra $250, but at least Dell provides the option. Coupled with the HDTV-friendly HDMI port, the Hybrid Studio becomes a more interesting option for living room use.
So Where Does This Leave the Mini?
Compared to Dell, the Mac mini isn't terrible, but it could definitely use some tweaking. While the hot-selling MacBook line gets the lion's share of attention amid a growing consumer notebook buying trend, the Mac mini has a loyal following. Just try to find a used Mac mini for sale. While possible, there aren't a lot available, and those that are tend to hold their value.
"I own a dozen Mac minis -- they make great servers -- and I'm not the only one who thinks so," Mel Beckman, a California-based system administrator, told MacNewsWorld.
In fact, Beckman said, some data centers use dozens -- if not hundreds -- of Mac minis for some server applications. Quite surprisingly, the Mac's overall excellent reliability extends to the entry-level mini and turns it into a reliable server.
400 Minis
Macminicolo.net currently hosts more than 400 Mac minis in a data center in Las Vegas, including first-generation Mac minis that have been running fine for three and half years. Basically, macminicolo.net runs minis for customers to use as servers.
"It's an inexpensive way to have a dedicated server -- both in hardware cost and monthly costs compared to full-size servers," Brian Stucki, owner of macminicolo.net, told MacNewsWorld.
"For most customers, even the outdated hardware in the mini is more than enough power for Web servers, file servers, mail servers, and databases," he added, noting that many customers simply like working with the Mac OS X operating system on their servers, as well.
"Leopard Server is quite inexpensive and very easy to manage -- though the majority of our customers just use the regular Leopard OS," he noted.
"Also, we have quite a few customers who have multiple machines for different clients. If a consultant has multiple clients with databases, he can often promise extra security by offering a server dedicated to each individual client," Stucki said.
Needed Upgrades
"The main Mac mini upgrade I'd like to see is memory -- from the current 2 GB maximum to 8 GB. Disk isn't an issue because you can always hang external drives off USB2 or FireWire -- but FW800 would be nice," Beckman said.
"A second Ethernet would be useful, although I've had no trouble using USB Ethernet adapters to add more ports. The built-in Bluetooth and WiFi is fantastic because it let's me mount these in a rack and manipulate them without a mess of video, keyboard, and mouse cabling," he explained.
"For home entertainment applications, I'd like a Blu-ray reader, full HDMI out, and optical digital audio -- a standard square connector, not Apple's proprietary analog/optical combo. And I'd like to be able to run the Apple TV software as the OS X application it really is, [which] is currently locked up in the Apple TV," he added, noting, "Microsoft has its Media Center Edition. Why not Apple?"
Of course, Mac minis, like all Macs, ship with Apple's Front Row application, which is similar to the Apple TV software -- except that Front Row seems to have been left behind by Apple, too. For instance, you can't rent or buy movies directly from your couch with the Apple Remote via Front Row. To get the job done on a mini connected to an HDTV, you'd have to use a wireless keyboard, which isn't a bad solution for those wanting a home theater PC -- it just illustrates the fact that Apple doesn't seem to be porting its Apple TV innovation to Front Row.
Forgotten the Mac Mini?
Perhaps the mini is not exactly forgotten. Maybe the neglect is on purpose.
"The Mac mini is an entry level product, and Apple makes its money at the high end. They really don't want to push the low end much -- they would rather folks bought iMacs," Rob Enderle, principal analyst for the Enderle Group, told MacNewsWorld.
Enderle does see a slim chance, however, that Apple might feel the need to create an improved Mac mini.
"Possibly next year, with the economy the way it is, it will be really tough to sell premium products at volume, and Apple may have to focus much more on the low end and a sell-up strategy 
because the volume buyer simply won't have the money to even consider an iMac," he explained.
As for the home theater PC angle, Mac mini enthusiasts are certainly connecting to HDTVs. The problem -- and this is the same problem with every HTPC (home theater PC), media server, and HDTV bridge device like the Apple TV -- is that the broader public isn't even aware of the products, and many that are, don't seem ready to shell out hundreds of dollars to hook everything up.
"It would be difficult to get Steve [Jobs] to sign off on making [the Mac mini] a premium Apple TV-like offering," Enderle said. "It is positioned as entry, and if you try to add too much to an entry product, it tends to destroy its value proposition," he added.
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