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The 27" iMac was an unexpected hit because Apple's other desktop offerings were terrible for most of the 2010s. For users wanting a speedy K-series desktop Intel chip and integrated graphics for a decent-ish price it was the only option. The Mac Mini used clock throttled B-series Intel chips and weak integrated graphics, and the Mac Pro became priced into the stratosphere with Apple's decision to exclusively use Xeon chips. Add in the Mac Mini and Mac Pro languishing for four and six years, respectively, between updates, and demanding users really didn't have a choice but to go with the 27" iMac. The fact that it came with a great display is, of course, icing, but I'm sure it pained plenty of people to have to discard the display when it was time to upgrade.
I agree with you on this, although, as you say, there was the Mac Pro, I suppose. There was no reasonably priced Mac desktop solution in the period. One of the reasons I stuck with Windows (which I had been using since its inception and MS DOS prior to that and CP/M prior to that etc.) in that period and only moved to a Mac for my laptop (Mac Book Titanium (2002?) which still boots). Once the 24" iMac came out I used that experimentally and moved to the 27" as soon as it was released. Took a while before I completely gave up my Windows machines, but eventually did in 2015 and loved the iMac since then. No longer, as the new M series based 24" is much less useful to me with its small screen and memory restrictions which is why I now have a 64GB memory M4 Pro Mini with 2 27" 5K screens one of which I had with my last 27" iMac in 2020. It is fine and works for me, but I can still see the attraction of a larger all in one.
 
In the past when the Thunderbolt display cost $1000 it was easy to price a base 27" iMac to be comparative. Right now they could only really price a 'Pro' or 'Max' to exceed the $1600 Studio Display.

Maybe the 27" Studio Display could be refreshed with a new $1200 model that lets them slot in a 27" iMac at $1600-$1800?

Ha, Apple would never drop prices!
 
Still using my 2015 iMac because indient want to spend money on a Mac mini with a studio display from 2019 …
 
I am still using my iMac Pro as well as a MacBook Pro M4 16". I'm still waiting for an all-in-one (27 inch or larger) to replace the iMac Pro, and would buy one as soon as offered if it had the power I desire. I'm not very interested in a separate monitor. Apple is leaving my money on the table.
 
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I would buy one in a second. My 24” iMac is acceptable, but a LARGER screen all in one Mac would be so much better.
 
I will now spend two minutes scrolling the comments to see announcements of what iMacs people currently have and likely an even split on whether or not a return to a larger screen is necessary.
If it was an even split, I’d be surprised! That would indicate that the population here is even further off the general population that I’d expected. :) For the vast majority of people anything “not mobile” is a non-starter.
 
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The end of 27-inch iMacs was a tough pill at the time. But I've really come around to accept the revitalized notion that iMacs are (and arguably should just be) modest but solid consumer devices for people who just need modest but solid consumer devices. For more pro-type flexibility, finding (at minimum) an appropriate Mac mini and a Studio Display was undeniably more expensive, but the years since have levelled prices so handily that there's little left to want for.
 
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I feel like a lower cost Apple display would be the better solution. You can pair it with a Mac mini or a MacBook Air or anything else. You also don't get stuck with a beautiful display that you can't use when the computer is outdated. I still use my 24 inch LED display.
 
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I was very disappointed when they stopped selling iMac with bigger screen. If they start selling the 27 in I will be first to buy it. Loved that size. 24 in is not good enough for me. On my other Macs I have been buying other displace so apple is losing money to other companies.
Almost everything Apple does loses money to other companies as a lot of what they sell is just too expensive for many. Other companies want to fight over bargain level devices, Apple’s happy to sit that out and just make a decent profit on what they do sell.
 
The 27 inch iMac was a bargain in base trim, there was nothing beating it on price and display. And there were discounts on it, it was way cheaper to get than the Studio Display.
 
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I can imagine the demand for a larger iMac isn't large. People that choose an iMac over a MacMini or Studio plus a separate monitor are likely looking for simplicity or cost savings. People (not all, but in general) that want large and are ready to pay for large are overall more likely to want to pick their best combination of display and separate Mac.
 
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It's still remains the best value 4k display in the industry, and you get a computer included.

It will last a few more years at least. Then maybe we'll see a bump to 27".

This is Apple's consumer desktop. If you're after 32" plus you're Pro and getting a Mini or Studio with a Studio Display or other.
 
Currently using a 27" iMac with 72GB total memory (64GB system + 8GB graphics).

Current 24" iMac can be BTO configured to a maximum 32GB total.

If needed I would grumble and deal with the smaller screen size. HOWEVER, "upgrading" to less than half the memory is a complete non-starter. Current plan is to run this machine until it falls off support, then have a day of reckoning.
 
I don't really see the point. Aren't most people using multiple monitors these days? Assuming that I'm not wrong about this, that defeats the purpose of whatever simplicity the all-in-one device offers.
 
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In the past when the Thunderbolt display cost $1000 it was easy to price a base 27" iMac to be comparative. Right now they could only really price a 'Pro' or 'Max' to exceed the $1600 Studio Display.

Maybe the 27" Studio Display could be refreshed with a new $1200 model that lets them slot in a 27" iMac at $1600-$1800?

Ha, Apple would never drop prices!
I suspect that is kinda reversed. The way to get a revised Studio Display cheaper would be to have a sizable-enough market for a 27" iMac - then the volume would let Apple push LG to sell them panels for cheaper, and other parts could be shared that would give additional economies of scale as well.
 
Would it sell? Isn't that why they consolidated to the 24" iMac as it's cheaper to build one model than two.
 
Wish this was in the pipeline several years ago. Got tired of waiting and moved to the Studio Display and Mac mini and can't imagine how Apple could resurrect the 27" or larger iMac audience.
 
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