ImAlwaysRight said:A price decrease of at least $100 per system would be appropriate, but with all the upgrades coming (processor, video card, video memory, system memory, hard drive, BT2 option), I highly doubt Apple will drop the iMac prices. The Power Macs should have been decreased in price by a couple hundred bucks each, but were not, and I'm sure Apple will follow the same pattern.
Look at current pricing: you can get a 20" LCD + single 1.8 PM for $800 + 1500 = $2300, and since a single 2.0GHz G5 iMac 20" will cost $1900 at the old price point, I doubt Apple will lower the price any further.
While I mostly agree that prices won't be lowered, the comparison to the PM 1.8 is not a good one. The PM was kept in the lineup for two reasons: (1) they had too much inventory to get rid of on the for sale page and (2) schools. They don't care about performance too much and in many cases, already have LCD's. They want a PM for the cheapest possible price. If the 1.8 could be upgraded to dual for $25, they wouldn't do it. If you are a consumer and want to buy the 1.8, you're crazy, but schools will eat them up.
The point is that arguments that the iMac can't be upgraded very much b/c it will canabalize the 1.8 are wrong. Those arguments work regarding the laptops, but not the desktops. Different markets.