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Yes. 27" iMac has also a display input so it can be used. I'm not sure are the cables available yet but calling to Apple or visiting  Store will definitely give you an answer
 
Word seems to be that if you use the iMac as a display then it takes up the entire display, not a window. This seems to be an awfully expensive monitor for a mere Mac mini; you can't use the iMac while you're using it as a display for the mini.
 
Word seems to be that if you use the iMac as a display then it takes up the entire display, not a window. This seems to be an awfully expensive monitor for a mere Mac mini; you can't use the iMac while you're using it as a display for the mini.

I guess I heard that you can switch between the iMac and Mac Mini using keyboard shortcuts.
 
Can I use the imac as the display for a mac mini. If so what cables are needed. Thanks in advance

Would it not be equally as simple to run the Mac Mini without a screen attached and just remote control it from the iMac when you need to?

Just a thought, depends on what you're doing but if the Mini is just a file server, it's probably overkill to use the 27" screen as a monitor.
 
Can I use the imac as the display for a mac mini. If so what cables are needed. Thanks in advance

It depends on which mini you own. If it's one of the 2009 minis with the mini displayport output, it will work witha simple mini displayport cable. The new iMac 27 only supports displayport input.

Cheers
 
I guess I heard that you can switch between the iMac and Mac Mini using keyboard shortcuts.

I think that's correct, but when the screen is showing the mini it uses the full screen, so there's not much you could do with the iMac at that time other than switch back.
 
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