Don't you think not providing a Mini at the $500 price point is a mistake though? I certainly do.
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What about people who want to switch moving forward? I just think they are blowing it by making it so expensive to start. The main reason I switched to Macs in 2008 was that I could buy a Mini for $400 on sale brand new.
This is the point though, the original Mini was for PC switchers who wanted a PC and had a keyboard, mouse, and monitor.
Years later, more of these switchers have gone directly to smart phones and tablets, or laptops. Desktops are a dying breed and Apple have identified that professionals are the die hard users and they firstly don't want an energy efficient machine on top of the list of requirements.
In hindsight now, the Mini now serves its function as a headless server for people like Mac Mini Colo/MacStadium where GPU isn't important.
Music professionals, app developers, and serious hobbyists who don't really need powerful dGPU and wouldn't even have welcomed a $100 premium for a pricey mobile Iris iGPU, never mind the 'Vega' GPU in the Kaby Lake G CPU, neither of which would have developed the Geekbench results that the value for money desktop CPU.
At the end of the day, the Mini has gone upmarket by using all SSD for tech reasons. As a side effect, and combined with the more powerful processors, we're looking at a machine with much faster benchmarks and smoothly running OS. And this can only help the Apple range.
The sub-$500 computer is something that Apple have famously said they couldn't do regardless of how many people who say they can build a cheap machine for pennies - it's inevitably not a Mac because software costs money too.
This is even if some people say that Apple need to spend more time fixing the bugs and less on gimmicky new and inevitably initially poorly functioning features.
When the 2018 iMac eventually arrives it wouldn't be very surprising to find it's gone SSD only like the iMac Pro - why would Apple now release a Mac with anything less than Fusion Drive in all SKUs? The prices will inevitably rise though.
I'll leave you with this quote which I wholeheartedly agree with:
Price increases seem to be Apple's new way of maintaining profits. We will see if that is sustainable. I priced out a 2014 mini with the mid-range dual core i5, 16 gb of ram, and a 256 SSD, and it came to $1099. A 2018 mini with the quad core i3 at 3.6 ghz, 16 gb of ram, and a 256 SSD is $1199. For the extra $100 you get a more capable cpu, faster ram, and better graphics. If I look at it that way, it's not such a terrible price increase.