Apple is not going to discontinue their flagship product. At least not yet for some time, I mean, it's the all-in-one computer that got them to where they are today. That being said, an update is commning, and here are my thoughts, Say it will be a simple spec bump, then there would be no reason for them not to simply announce it at wwdc like the spec-bumped macbooks, or to make a quiet bump like with the Mac Pro. And if like some threads suggest it will be released next year, apple would cetainly drop the prices on the current 2011-model. They are not stupid, and for them to sell severly outdated technology at such high prices (especially with the eminent threat from dell and microsoft) would be to put nails in their own coffin. So I believe that this situations points to a release connected to the release of moutain lion(late july), and that it will hold a bit more than a mere spec bump, something they wanted to spend more time announcing than what they could fit at WWDC. Their complete neglection of the imac is a little bit too suspicious!