Is Apple Planning a Low-Cost iMac?

Source: Apple.comWell-connected KGI Securities analyst Ming-Chi Kuo recently peered into his Apple (NASDAQ:AAPL) crystal ball again and came away with some interesting predictions about Apple’s iMac desktop. In a note to investors that was obtained by Apple Insider, Kuo wrote that Apple is developing a “budget iMac model” that will be launched next year.

Although Kuo declined to provide a specific price range for the lower-cost iMac, the analyst predicted that the new model will help Apple increase its iMac sales by 10 to 20 percent in 2014. Kuo noted that Apple saw a decline in its iMac sales soon after it released a redesigned version of the desktop computer last year.

The analyst believes that Apple failed to gain a foothold in overseas markets due to the desktop computer’s high price. Apple’s 21.5-inch iMac currently starts at $1,299, while the 27-inch model starts at $1,799. Apple updated its iMac product line less than a month ago with Intel’s (NASDAQ:INTC) next-generation Haswell processors, NVIDIA (NASDAQ:NVDA) GeForce 700 series graphics, and the latest 802.11ac Wi-Fi protocol capability.

Besides offering his predictions on Apple’s iMac product line, Kuo also weighed in on the next two generations of iPad minis. Kuo restated his previous prediction that the iPad mini 2 will feature a Retina display and also forecasted an iPad mini 3 launch in 2014.

According to unnamed sources cited by All Things D, Apple will be holding an invitation-only event on October 22. Most industry watchers expect that Apple will unveil the fifth-generation iPad and the iPad mini 2 with Retina display at this event.

Here’s how Apple closed out the trading week on Friday.

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