Cheap iMac May Be Coming In 2014

Apple may begin offering a cheaper version of its popular iMac computer sometime in 2014, according to a KGI Securities analyst. Ming-Chi Kuo states that Apple is already working on the “cheap” iMac and upon release, it will be able to boost sales by as much as 10 to 20 percent.

This forecast from KGI not only includes information regarding a cheaper iMac, but Kuo also talked about a high-res iPad which should be coming out by mid-2014 as well. The new iPad would be 9.7-inches and have the highest pixel density out of any iPad that we have seen so far.

Kuo, who has been spot-on with previous forecasts, feels that Apple will need to offer a cheaper iMac after the company failed to boost sales with its 2012 iMac update. After the 2012 version was released, very few units sold and Kuo blames the iMac’s failure on its steep price point.

Even Apple’s cheapest desktop computer costs $1,299, so the vast majority of potential Apple customers simply cannot afford an iMac. However, if the company could drop the price below $1,000, people may be able to afford it.

Not only would Apple see initial increases in the amount of iMacs sold, but Kuo feels that the company would continue to see year-over-year increases in sales as long as the iMac comes in at a lower price point.

“Our surveys indicate that Apple’s last iMac model…shipped fewer-than-expected units in the worldwide market. We think the price was set too high,” Kuo said. “We thus think Apple may offer a budget iMac model to push shipments among non-US markets in the face of solid competition from Lenovo (CN), HP (US) and other rivals.”

Last but not least, Kuo stated that a 12-inch Macbook may also be in the works for a 2014 release. The research firm did not release a whole lot of information regarding the new Macbook, but it appears to be a spinoff of the Macbook Air, not the Macbook Pro.