nullstream weblog - Cheap iMac Rumor

Think the headless imac rumor is real or some mac fanboy's wet dream? I want to believe and I would buy one if they really turn out to be $500 but it probably won't come to pass as it makes too much sense. For $500, I'd buy one for my inlaws also just to get out of providing IT support for an adware infested Windows 98 box."

Even if it comes out it will be hobbled in some way like soldered-on 256mb
ram with no expansion, and no pci/agp card for graphics. If they do this it
will be completely non-upgradeable and basically disposable. Yes, my
prediction is that everything, including CPU will be soldered on. That's
how Jobs views a computer at that price point, and he can't cannibalize the
$2000 dual proc that can barely compete with an athlon64.

That all said, if they do come out with this, it might be nice as a toy -
I'd like to play with some of the latest mac stuff, and this would be great
for development.

I think that the market that something like this is targetted at (a casual computer user that like the iPod and uses Windows), having a disposable computer is reasonable.

Running iTunes, MSN Messenger, Safari, Terminal and AppMonitor, I'm using about 260 MB or RAM (of the 512 MB installed). This sounds like a lot, but then Unix (and I'm sure Windows) systems will keep using 'unused' RAM as a file buffer cache when other apps aren't requesting it, so I don't know how representative that number is. In a more limited machine, the RAM usage may be less for the same apps.

However, you certainly wouldn't want to run VirtualPC or GarageBand with 256 MB. 512 is pretty much the minimum for GarageBand, and you'd think that Apple would encourage people to use that. Or perhaps that's their strategy: "... hmmm, I wish I could run GarageBand, better get a full Mac!"

But then again, people who want to do GarageBand or other digital media creation (Photoshop, Final Cut, Logic Pro) should really invest in a G5 which can administer the proper spank on all those floating point ops.

The one thing that makes this pricing feasible is that the G4 14" iBook is already selling at $899, so I could see dropping the battery and screen for $699. Maybe $649. They wouldn't sell a whole mac for less than an iPod Photo @ $499.

Strategically, I think the iPod has made Apple "cool" again. This plus the massive inability for Microsoft to hit one out of the park has created a space for a simple mac that is as disposable as the iPod after the battery fails in 2 years. With the built in OS and applications, the non-root access to protect against viruses and .mac, Apple has something that may be compelling to the "parents" crowd that is trying to move off AOL and WebTV. Not the best market maybe, but certainly better than education and graphic design in recent years.

Every year the same speculative hype, followed by the same initial let down then gradual acceptance of what they do announce. Since everyone always spreads Apple rumors this time of year, let me join in. I have this information from a very reliable source (wink, wink).

Here’s my speculation; Apple announces that they are getting out of the PC business all together to focus on making money with the Ipod. They starts a slow phase out plan and then sell off their computer business to someone who runs it into the ground within 2 years. In the mean time Apple focuses on clever ways to feed the hungry Ipods, initially continuing to embrace Windows, followed by a short lived web appliance. Simultaneously they launch music kiosks in Malls and department stores where you browse for music then plug in your Ipod with one hand, while inserting your credit card with the other to load up on the tunes. Eventually they just wifi enable the Ipod and launch a partnership with TMobile and Starbucks. This enables you to shop, spend, download and listen on one device without so much as having to set down your latte’.

As always I expect there will be a lot of disappoint and Apple mocking in the geek community after Macworld. Just like last year when Apple announced a lame new ipod that held less music but cost almost as much a full size ipod. Of course mini ipods were another home run by Steve and company, and a humbling reminder that Apple doesn't have 8 billion in sales per year by accident.

I still don't think there'll be a $500 headless imac announced, but maybe I'm just lowering my expectations to avoid disappointment. Regardless of what is announced it's nice that there is one computer maker that continues to produce innovative products that cause a buzz. I don't ever recall speculating what Michael Dell would be announcing during his keynote at the Dellworld expo.

Good point, few companies generate the yearly buz like Apple. But it is true that every year there is a lot of disappointment. But thats what people get I guess, for getting their hopes up beyond reason.

I heard a rumor on the internets that the iPod was going to get satellite radio capabilities.

That actually would be very cool. I wonder how much space it actually takes for a sat readio receiver / antenna. Would it fit?

Ok this one is getting crazy, even big houses like CNN Money are reporting on it. If this turns out to be wrong I think it will seriously overshadow what ever it is Steve is really going to announce.
http://money.cnn.com/2004/12/31/technology/apple.reut/?cnn=yes

Another rumor I heard :)
Apple is going to release a completly wireless Ipod. This device with come with bluetooth headphones and use either bluetooth or wifi to sync with the PC and stream music to other Ipods. In keeping with the completly 'wireless' theme it will use an inductive charging cradle instead of a power cord. While they are at it they are releasing a developer API and SDK complete with a free compiler and emulator. This will allow 3rd parties to develop plug in applications that will run nativly on the Ipod, effectivly turning it into a 'personal server'. Ok maybe I made this up.

I saw a segment on CNN about this rumor while at the gym this morning. Now from the Seattle Times:
http://seattletimes.nwsource.com/html/businesstechnology/2002136262_cheapimac31.html

I guess people would be excited about this if they did it... imagine the free publicity they'd get.

I think the $599 to 699 price target in the Seattle Times article seems more reasonable. BTW, the cheap iMac rumot has totally overshawdowed the first Macworld expo leak that resulted in a lawsuite:

This could be a very interesting Macworld expo if a flash iPod, Motorola iPhone and the low end iMac are announced. And isn't Tiger supposed to be offically released also?

Now Apple is sueing think secret. Info in the lawsuit seems to backup the headless mac theory. Of course the price remains to be seen. There is also a rumor of an new Apple Office product.

Think about the statement for a minute:
"Apple plans a G4-based iMac without display"
OMG! A computer WITHOUT a display. Wow! So much of the excitement people have about this is because Apple were such bastards in forcing the purchase of a monitor per machine. It's standard IT budgeting that a monitor lasts 2-3 machine upgrade cycles. It's not like this setup is anything revolutionary at all, but they get massive admiration for it. That said...

The interesting thing to me if this is even somewhat true is what Jobs is seeing now that he didn't several years ago about the low end market. And how will he position (read: cripple) this device to keep up his $2000 mac hardware? How will a limited device provide value? It has to provide this value in volumes too, given the lower price point.

Apple cannot release a functional mac for $499. With a $300 3rd party LCD, there would be no way they could sell the $1300-2000 LCD iMac. If the rumor is real, I see a price at around $699, and a machine that basically can just run the apple suite of software (their email, browser, office apps, etc) and .mac for subscription. So they'd basically have a .mac device (sort of thin client if you will).

They could make money on it, as the cheapness would be offset by:
1. The more rapid upgrade cycle for a non-expandible device
2. The still-huge profit margin on a device that would cost them $200-300 to build.
3. The additional .mac subscription, iTunes, software updates, external add on hardware (iPod), etc.

Apple could also feasibly come out with a $499 device if it didn't come with mouse, keyboard, HDD or optical. Basically a network computer. Maybe it could come with a small HDD so you could store applications and data, but not masive amounts of data (that's what your iPod is for, silly). You could go out and buy external drives (or why not an iPod?) You could buy software directly off the net and download it. I think this is a bit too forward thinking for Apple, and not sure that there is software and a market to support it now.

Another prank? iHome does have a nice ring to it. Too bad it doesn't have TV tuner input.

Crap. Looks like a prank, just noticed "center" is spelled "centre". Probably some Canadian prankster...

Ha ha, I noticed the exact same thing! It sure does look realistic though. Someone put some time into that. I guess it will be interesting to see, but the last news I heard was they were blacking out the streaming video coverage of the event, which is lame if true.

I've always thought that Apple would make a great set top media box interface with QuickTime, iTunes and iPhoto. They've repeatedtly said they weren't going this direction though. And even though it would be useful without a TV tuner, it would get bad reviews without one.

No live webcast from Job's this year. I'm sure there will be plenty of 'play by play' posts though.

The iMac LC - Ha ha ha. Mac LC was a hillarious pizzabox machine. What if that's what they call it? Didn't they have an LC II right before the performa series? Dangerous territory Jobs is in...

Yeah, totally weak about no webcast. But it's not like they don't have enough hype anyway. I love this time of year. I went to 4 macworlds in a row in SF. The best one was with Be, Kai's Power Tools and PowerComputing clones.