Report: Apple to Debut Sub-$500 iMac

Apple rumor site Think Secret is reporting that the company will unveil a new low-cost iMac at Macworld Expo in January. The new Mac will retail for less than $500 without display and is targeted at iPod users who run Windows, as a way to bring new converts to Apple's offerings.

The new iMac will feature a G4 processor around 1.25GHz, according to Think Secret, with 256MB of RAM and 40GB or 60GB hard drive. Apple is expected to bundle its iLife suite sans iDVD, as the company's SuperDrive DVD recorder is not included in the base model. Current plans at Apple are to ship the new machine late in the first quarter of 2005.