While rumors last week indicated that Apple would be launching minor updates to its iMac line, Apple today unveiled a new lower-cost 21.5-inch iMac starting at $1,099. Previously, the entry level iMac started at $1299.



The new entry-level 21.5-inch iMac comes with a 1.4GHz dual-core Intel i5 processor, a 500GB hard drive, 8GB of memory, and an Intel HD 5000 Graphics chip for $1,099. Customers can also choose to include a 1TB hard drive, a 1TB Fusion Drive, or 256GB of flash storage on build to order options. All of Apple's other 21.5-inch and 27-inch iMacs are still available as well.

KGI Analyst Ming-Chi Kuo predicted last year and earlier this year that Apple would be launching a lower-cost iMac in 2014 to bolster sales in critical foreign markets.

Apple is also rumored to be working on Retina Display-equipped iMacs, as recent evidence in the OS X Yosemite developer preview suggested such models were in the works. While there is no specific release date for a Retina iMac, Apple could launch the new desktop computer later this year.

Apple's new entry-level iMac is available today through Apple's various retail locations and online store, and shows an availability of "within 24 hours."

Update 5:41 AM: Apple has issued a press release announcing the lower-cost iMac.