Well, I work in the automotive industry, and for the past several years the 3 American companies have sold certain models at a loss and even more models at break even prices. This kept demand up, kept thier market share percentages high, and kept the assembly lines moving. Apple could do that in order to gain market share. They do have one of the largest cash reserves of any company of any type. But I'm sure we all are well aware that all these losses have finally caught up to the big 3 automakers. You can only do that for so long, as they have learned, and now thousands of autoworkers are out of work, each of those 3 had $1 billion or more losses last year, and are HOPING to break even this year. And they only did this on thier slowest selling models! Apple would be crazy to break even or accept a loss on something as hot as the iMac! I think most people who will refuse to pay the extra hundred bucks will simply wait until prices fall again, but I'd say there are enough people who will pay extra to keep the units moving for now. I plan on buying mine anyway.