Piper Jaffray analyst Gene Munster believes Apple is set to unveil a low-price iMac – with rumours claiming that such a model could debut at next week's Macworld Expo in San Francisco.
"We believe it is not out of the question that Apple will try to capitalize with a more widely accessible product," Munster told Reuters.
Munster said he believed Windows iPod owners and PC users are more inclined to buy a Mac than in the past due to security concerns. He added that a discounted iMac could add to the "halo effect" of the iPod, which has led to consumers switching to the Mac.
There is speculation that Apple will unveil a £260 computer at Macworld Expo San Francisco.
Reports do not reveal any sources of this rumour.