As rumored last week, Apple has today released a new model of iMac. These machines are considerably cheaper than their predecessors, priced at $1099. Previously, the cheapest iMac SKU was priced at $1299 (which is now the mid-range model).

The cheaper iMac features a 1.4 GHz dual-core i5 CPU, which represents a significant worsening in performance over the previous base model of iMac, which featured a processor clocked at 2.7 GHz.  The CPU does Turbo Boost up to 2.7 GHz however, which does make up some of the difference.

Aside from the CPU, the hard drive has also been cut to 500 GB. The new model also features a lower-end integrated graphics chip. All other iMac models continue to use either Iris Pro integrated graphics or dedicated Nvidia cards. Otherwise, the internals of the new machine are unchanged.

Apple’s Press release below…

If you were desperate for a slightly-cheaper desktop Mac, the product is ready to ship today. The rest of the iMac lineup remains the same — there is no equivalent ‘cheap model’ of the 27 inch iMac. The target market for this product is unclear, offering relatively minor cost savings yet yielding a big drop in performance and storage space. All three base models can be compared on Apple’s updated Specs page.

World’s Leading All-In-One Desktop Now Starts at $1,099

CUPERTINO, Calif.–(BUSINESS WIRE)–Apple® today introduced a new 21.5-inch iMac® starting at just $1,099, making the world’s leading all-in-one desktop even more affordable. Featuring a stunning ultra-thin design, brilliant display, Core i5 processors and the world’s most advanced operating system, the new iMac is the perfect entry-level Mac® desktop.

The new 21.5-inch iMac features a 1.4 GHz dual-core Intel Core i5 processor with Turbo Boost Speeds up to 2.7 GHz, Intel HD 5000 graphics, 8GB of memory and a 500GB hard drive. All iMac models include next generation 802.11ac Wi-Fi, and two Thunderbolt ports and four USB 3.0 ports for excellent expandability and support for high-performance peripherals.

iLife® and iWork® come free with every new Mac. iLife lets you edit your favorite videos with iMovie®, create new music or learn to play piano or guitar with GarageBand®, and organize, edit and share your best shots with iPhoto®. iWork productivity apps, Pages®, Numbers® and Keynote®, make it easy to create, edit and share stunning documents, spreadsheets and presentations. iWork for iCloud® beta lets you create your document on iPad®, edit it on your Mac and collaborate with friends, even if they’re on a PC.

Every Mac comes with OS X®, the world’s most advanced operating system, designed for ease of use while taking full advantage of the powerful technologies built into every Mac. Earlier this month, Apple announced OS X Yosemite, a powerful new version of OS X redesigned and refined with a fresh, modern look, powerful new apps and amazing new continuity features that make working across your Mac and iOS devices more fluid than ever. The final version of OS X Yosemite will be available for free from the Mac App Store℠ this fall.

Pricing & Availability

The new 21.5-inch iMac is available today through the Apple Online Store (www.apple.com), Apple’s retail stores and select Apple Authorized Resellers. Starting at $1,099 (US), the new iMac features a 1.4 GHz processor with Turbo Boost speeds up to 2.7 GHz, 8GB of memory and a 500GB hard drive. Configure-to-order options include a 1TB hard drive, a 1TB Fusion Drive, and up to 256GB flash storage. Additional technical specifications, configure-to-order options and accessories are available online at www.apple.com/imac.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

NOTE TO EDITORS: For additional information visit Apple’s PR website (www.apple.com/pr), or call Apple’s Media Helpline at (408) 974-2042.

© 2014 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS, Macintosh, iMac, iLife, iWork, iMovie, GarageBand, iPhoto, Pages, Numbers, Keynote, iCloud, iPad and OS X are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

Contacts

Apple Colin Smith, 408-862-1171 colins@apple.com Jennie Syme, 408-783-0203 jsyme@apple.com