BTW looking at that keynote and Apple price schemes under Steve Jobs I really miss him.
Apple wasn’t cheap at the time, but prices were reasonable.
”I want everyone to have one” - Steve Jobs.
”I want higher profits” - Tim Cook.
Pricing of G4 iMac on release day:
$1299 base
$1499 w/2x RAM, better optical drive, speakers
$1799 w/2x RAM, 1.5x storage, 14% faster CPU, better optical drive, speakers
Two months later, the prices went
up by $100, ostensibly due to high component costs. They went back down five months after that.
G4 iMac pricing adjusted for inflation to 2022 dollars:
$2007 ($2161 after price-bump)
$2315 ($2470 after price-bump)
$2879 ($2934 after price-bump)
Pricing of M1 iMac:
$1299 base
$1499 w/2x RAM
$1899 w/2x RAM, 2x storage, 14% faster GPU, ethernet port
$2499 w/2x RAM, 8x storage, 14% faster GPU, ethernet port
Coincidentally, there has been a massive global component shortage since announcement that has caused price increases or production delays in a wide variety of industries. The iMac price has not increased.
You can certainly argue that Apple's gross margin is higher today than it was then, and therefore they're prioritizing profit over widespread availability, but using the G4 iMac versus today's to illustrate that makes no sense at all. Even when not adjusted for inflation, the current "general user" iMac costs
exactly the same amount as the G4 iMac. Inflation adjusted, it's about 53% cheaper--it would have cost $840 in 2002 dollars.
The equivalent to 2002's top-of-the-line is now somewhat more expensive, in absolute dollars, but is much cheaper inflation-adjusted, as is today's top-of-the-line, which offers a great deal more than what you got then.
More broadly, the cheapest absolute-dollar iMac ever sold was the 4th get G3 in 2000, at $799, which is almost exactly the price of a base iMac today when adjusted for inflation. Every non-edu-specific iMac since has cost at least $999, with the last model at that price being in 2011, the last year of Steve Jobs' tenure. Adjusted for inflation, that was also by a very small margin the cheapest iMac ever, and would be about $1230 in 2022... less than 5% cheaper than today's cheapest iMac.
Inflation-adjusted bottom-end iMac pricing has actually been impressively consistent for most of the past 20 years, and looking only at the first model release after a form-factor change (jellybean, lamp, white, white G5, white Intel, aluminum, thin aluminum, M1), the M1 is tied with the thin aluminum for the cheapest ever when inflation adjusted.
All of which is to say that the G4 iMac in question cost a
lot more in real-world dollars than current equivalent iMacs from Apple, and even in absolute dollars isn't any more expensive despite 20 years of inflation and offering a pretty impressive amount of bang-for-buck relative to competing computers of today.
Looked at from an overall corporate perspective, Steve Jobs' second tenure as CEO of Apple was from 1997 to 2011, during which Apple's gross margin (which started negative) increased steadily the entire time he was CEO, ending a little under 40%. There was a spike in gross margins after Tim Cook took over, but that was temporarily and their margin has been consistent and decreasing slightly for 4 years straight, to a little over 50% today. This does mean Tim Cook is taking more profit than Jobs, but given that gross margins were still increasing steadily when Jobs stepped down it's hard to say much about what would have happened had he remained CEO longer, and the app store does change the calculation about just how much profit is being taken on Mac hardware.