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Apple launches Mac mini

Globe and Mail Update

Weeks of rumours on Apple-related chat sites have proven true, with Apple Computer Inc. launching a low-cost desktop computer on Tuesday.

According to Apple's website, the Mac mini will retail for a starting price of $499 (U.S.) or $629 Canadian and go on sale Jan. 22. That price doesn't include a mouse, keyboard, monitor or speakers - all are add-ons.

The mini is aimed squarely at non-Mac users. The company is hoping the low-cost unit will compete with entry-level PCs, enticing Windows users on a budget to buy a Mac when they next upgrade.

"People who are thinking of switching will have no more excuses," Apple CEO Steve Jobs said during his keynote speech at Macworld and Expo on Tuesday afternoon. "It's the newest and most affordable Mac ever."

The Mac mini takes the entry level spot in Apple's lineup from the eMac, which has a base price of $799 (U.S.).

The new machine is a return to the company's roots. Macs were intended - and marketed - to be the computer for the masses, with the first Macintosh making its debut more than 20 years ago for $2,500 (U.S.) against a $7,500 IBM XT. PC prices only fell after IBM licensed cheap clones.

The launch of the mini comes at a time when Apple's computer lineup needs a boost at the retail checkout. While the company's iPod dominates the market for music players, Apple's desktops comprised only about 1.8 per cent of global desktop shipments in the third quarter of 2004, according to both International Data Corp. and Gartner Inc., down from just over 2 per cent the previous year.

The new Mac mini lives up to its name, measuring 6.5 inches wide - slightly wider than a CD-ROM disc - and two inches tall. The tiny case houses up to 1GB of memory (depending on the model), either a 1.25 GHz or 1.42 GHz PowerPC G4 processor and ATI Radeon 9200 graphics with 32MB of dedicated DDR memory, a slot-loading combo optical drive that can read DVDs and CDs and burn CD-R discs, an ethernet card and a fax/modem. Apple simply calls the hard drive "spacious," but insiders say the $499 (U.S.) model has a 40-gigabyte hard drive and a $599 model will have an 80-gigabyte hard disk.

Optional add-ons include WiFi and Bluetooth wireless capability, and Apple's SuperDrive.

The package ships with Mac OS X v10.3 (Panther), Quicken 2005 for Mac, the 3D games Nanosaur 2 and Marble Blast Gold, and iLife '05.

The front and sides of the box are featureless aside from a DVD drive slot, with the top sporting the Apple logo. On the back of the machine are two USB 2.0 ports, a FireWire port, headphone jack, DVI/VGA monitor port, modem and ethernet jaks, and a Kensington-type security lock-down slot. The power switch is also located on the back of the machine.

It's difficult to make direct comparisons of PCs and Macs except in general terms. Despite Mr. Jobs' comment about switchers having "no more excuses," the Mac mini lacks things like a keyboard, monitor and mouse that can be found in the average $500 (U.S.) PC.

Dell, for instance, sells two complete machines for $500 -- the Dimension 2400 and the Dimension 3000 ($449 U.S. after a rebate). Both offer a 17-inch monitor, keyboard and mouse, Windows XP Home Edition, Corel WordPerfect, and both are based on the Celeron processor running at 2.4 GHz (the Dimension 3000 has a Celeron D processor).

Gateway has a machine selling for $499 as well, but offers a $150 rebate, which brings the base price down to $349. That machine comes with Microsoft Windows Home Edition and Microsoft Works, and includes an 80GB hard disk.

Compaq also makes three competitively priced computers in that price range, in the SR1005T series, that sell for $519, $419 and two at $359 (all after rebates). All machines come with a keyboard and mouse, but do not include a monitor.

In addition to the iMac mini, Apple also announced a major upgrade to its video-editing software, Final Cut Express HD. Designed for video enthusiasts, students and aspiring filmmakersthe software can edit in high-definition video and output HDV format as well.

Other HDV-upgraded software includes iMovie HD and Final Cut Pro HD. Priced at $379 (Cdn.), Final Cut Express HD also includes LiveType for animated text and graphics and Soundtrack for custom musical scores.

Final Cut Express HD will be available in February.

Apple also announced iWork '05, productivity software designed to take advantage of both Mac OS X and iLife '05 to help users create, present and publish professional-looking documents and presentations. iWork '05 introduces Pages, a new word processor, and also features Keynote 2, a new version of Apple's presentation software that lets anyone create cinematic-looking presentations.

iWork '05 will be available in the U.S. on , Jan. 22 and worldwide on Jan. 29 for $99 (Cdn.).

Another Apple announcement introduced the iPod shuffle, a digital music player based on iPod's shuffle feature. Smaller and lighter than a pack of gum, iPod shuffle comes with its own lanyard, and works with iTunes' AutoFill feature, which automatically selects songs from a user's music library to fill up iPod shuffle with one click. The iPod shuffle is available in two models: 512MB holding up to 120 songs for $129 (Cdn.) and 1GB holding up to 240 songs for $189.

The 512MB and 1GB models of iPod shuffle for Mac or Windows are now shipping, and include earbud headphones, lanyard and a CD with iTunes 4.7.1 for Mac and Windows computers. An iPod shuffle arm band, sport case, battery pack, dock and USB power adaptor optional accessories will become available over the next few weeks for a suggested retail price of $39 each.