Apple unveils redesigned iMac desktop PCs

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Wednesday, August 08, 2007 at 1239 hrs Apple Inc unveiled a line of slimmer and more powerful desktop computers on Tuesday to sustain momentum in its core business at a time when its new phone has grabbed the media spotlight.

The new iMacs, which will sport thinner aluminum casings, have displays measuring 20 inches and 24 inches and will cost USD 1,199 to USD 1,799, depending on their configurations, Chief Executive Steve Jobs said at a media event at Apple's headquarters in Cupertino, California.

The cost of the 24-inch iMac has been dropped by USD 200, and Apple has eliminated the 17-inch iMac computer, Jobs said.

The last update to the iMac line was in September 2006, when Apple first introduced a 24-inch-screen model.

"Apple has grown two to three times the market for the past several quarters," said analyst Shannon Cross of Cross Research. "This product launch should position them well for the back-to-school and holiday seasons."

Apple recently launched the iPhone mobile device in a bid to build a third major product line alongside its Macintosh computers and iPod media players, but desktop and laptop sales still account for nearly half its revenue.

In its third quarter, Apple sold 634,000 desktops for revenue of USD 956 million, accounting for about 18 per cent of total revenue.

"The iMac has been really successful for us and we'd like to make it even better," Jobs said. "We've managed to make it even thinner than before."

The new iMacs can be fitted with processors running up to 2.8 gigahertz, up to 4 gigabytes of system memory, and up to one terabyte of hard-disk space.

Apple laptop sales totaled USD 1.58 billion last quarter. The MacBook laptop line was not affected by Tuesday's announcement.

Sales of Macintosh computers have grown faster than the overall PC market, but Apple's share of the market by unit sales is estimated to be less than 5 per cent.

Apple has used the iPod and, now, the iPhone as "halo" products to draw customers into stores and get them interested in its computers.

Jobs also announced a new version of the company's iLife package of consumer applications, with new features to help users organize and share photos and videos.

"The iPod and iPhone drive more people into Apple stores, but the new iLife suite gives Apple a competitive advantage by giving people tools they need to be creative," said Tim Bajarin, president of consultancy Creative Strategies.