This seems really strange. The CPU in this new cheaper imac is more expensive than the one in the more expensive model.
Common available bulk prices. ...
This new one would seem to have the
i5 4260u whilst the others have the
i5 4670. The 4260u is a $315 CPU, the 4670 is $213. I know Apple get preferential pricing, but this still seems very strange. Could it be they've decided to make less profit just to maintain product differentiation?
First, the 'old' entry iMac has a i5-4570R ( with Iris Pro GPU) which is $255.
http://ark.intel.com/products/76640 So the gap isn't as big as your making it. $315 to $255 is a 19% drop.
Profits across the whole Mac line up probably matter more. This 4260U is same CPU package sold across the current whole standard MBAs line up. So the number of 4260Us that Apple will buy from Intel is roughly # of MBAs + number of new entry iMacs. That is probably alot bigger than the 'old' entry iMacs all by themselves. So say 2M versus .350M (something close to a order of magnitude difference). Intel might be persuaded into offering an even bigger ( e.g., 8-10%) discount to 'unload' those Haswell ULV CPUs while the Broadwell ULV are just over the horizon slowing down sales.
If Apple can get bigger discounts on the MBA component(s) then margins on those go up and they sell in much higher numbers (relative to a single sub configuration of iMac).
Even without a huge discount from Intel, Apple has probably shaved costs out of the screen ( not new), HDD , and fixed memory configuration (probably still DIMMs, but no build to order options so cheaper to make). The bigger margin drops Apple will probably take on these are that a significant number are going to be bought in bulk (e.g., edu labs buys) and the price will get pushed below $999.
It could also be Intel is selling apple the worst i5s they have and rating them only for 1.4ghz and that's how Apple can sell it for less,
It isn't "worse" as much as about to be superseded. While generally the new Broadwell models won't arrive until 2015, it looks like the ULV variants will roll out in Fall 2014. Orders should be trending down for these particular CPU ULV models. Broadwell is substantially better at being a very good ULV solution that the current stuff.
I would normally imagine they'd go for the desktop i5s and lower the speed than the more expensive mobile i5s.
They didn't have lower speed (at least the x86 dimension). Simply moving away from Iris Pro would have cut costs. But Mac Mini piggybacking on MBP CPU volume buys is a tactic they have used before.
Kind of queasy about future of Mac Mini.... If Apple couples it to the baseline MBA CPU buys also then "low end" CPU performance has hit a plateau. IMHO it would make more sense to drive up the entry desktop CPU buys by merging it with the Mac Minis rather than dragging everything back to MBA performance levels. At least if Apple wants to keep these desktop price points long term.