Another thing to look at is: Apple is now doing what Adobe does with Photoshop. A version of Photoshop from several years ago is still making them money today as Photoshop LE. The Mac Mini is G4 technology, not G5. If they stay one step behind the bleeding edge, there will still be customers that want the G5 just because they need the extra pizazz and moxie that the later development has. I think, though, that it will cut into the eMac's market.
But think: If they could double their market share with this strategy, get back some of what they lost to the PC world... what a win that would be.
Still, you're going to get more people on the Mac Mini if they can have MS Office on it... I don't see iWork being a huge threat to that market. iLife, on the other hand, is what *I* want a Mini for. My G3/Sonnet/500 still won't do GarageBand and I'm really sick and tired of doing music on my evil PC.
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