The new 21.5-inch all-in-one desktop comes with a 1.4GHz dual-core Intel Core i5 processor but, more importantly, with a price tag of just $1,099.
That makes it a whole $200 cheaper than the current entry-level iMac yet, apart from the chipset, which isn't exactly premium but is no slouch either (it has a Turbo Boost feature that ups performance to 2.7 GHz), the new computer packs enough of a punch in terms of performance and features to start stealing business from Windows PC makers.
The desktop comes with two Thunderbolt ports, four USB 3.0 ports and 8GB of RAM as standard. It also gets a 500GB hard disc which can be upgraded to 1TB for just $50 more.
Rumors have been circulating that a cheaper desktop was on the list of Apple's products for this year, however, most experts believed that Apple would make the iMac less expensive by using different materials, a new form factor or using an iPad chip instead of something from Intel. But just like the other models in the range, the new iMac boasts exactly the same super-thin design and metal finish and of course it comes pre-loaded with Apple's iWork productivity apps and its creative suite that includes iMovie and GarageBand.
The new model means that the iMac range has swollen to five configurations with two screen sizes -- 21.5-inch and 27-inch -- with prices ranging from $1,099 to $1999.00. Until the new iMac was launched, the entry level model with a 2.7GHz dual-core Intel Core i5 processor cost $1299.00.
This is the second time this year that Apple has upgraded one of its computer lines while simultaneously cutting its cost. In April it improved the processors on its MacBook Air ultralight notebooks and also slashed $100 off their retail prices.
The new 21.5-inch iMac is available to order now via Apple's website. In Europe it will cost €1099 -- the similarly big €200 saving on the current cheapest model.