It looks like, after years of positioning themselves as the BMW of the computer world, Apple are
about to release a cheap, bare-bones Mac. The new Mac, codenamed Q88, will come with no monitor, a CDRW/DVD-ROM drive and 40 to 80Gb of disk space, and will come in a flat enclosure that can be either vertical or horizontal. Which suggests that it'll look like a shiny white PlayStation 2 and/or an oversized screenless iPod.
The reason for Apple's change of heart is said to be the success of the iPod; the new Mac, which will eschew Apple's focus on performance, and be aimed at Windows users who liked the iPod and would buy a Mac if they were cheaper.
And The Reg speculates that Apple could position these units as home-entertainment PCs.