Rumors: Apple to introduce sub-$500 desktop

Word around the campfire is that the boys at Apple are planning to launch an iMac priced at $499:

Two Mac-focused sites--Think Secret and Apple Insider--reported on the possible release of a low-end Apple PC this week, citing unnamed sources. The rumored $499 Mac will have no monitor, 256MB of RAM, a 1.25GHz PowerPC G4 processor and a hard drive with storage capacity between 40GB and 80GB, according to the reports. These details, while concrete, have not been confirmed by Apple. However, the strategy itself sounds sensible, said Gene Munster, a senior research analyst with investment firm Piper Jaffrey. Apple has garnered incredible shopping traffic through its stores but has not had great luck in turning browsers into buyers, he said.

The success of Apple's iMac series has been due, in large part, to the fact that it's an all-in-one unit. Abandoning that model is just plain dumb.