Research firm iSuppli has determined that each Intel-based iMac costs Apple $873 to build (excluding keyboard and mouse):

iSuppli's teardown of the new iMac revealed that Apple also is using Intel's mobile 945 core-logic chipset to support the Core Duo microprocessor, said iSuppli, which estimated the cost of the microprocessor at US$265 and the two-device chipset at US$45. Together, the Intel microprocessor and Mobile 945 chipset account for 35 percent of the new iMac's total BOM, according to Andrew Rassweiler, teardown services manager and senior analyst for iSuppli.

The Intel chips in the iMac are designed for use in notebook PCs, rather than desktops, noted iSuppli, adding that it believes Apple's decision to use Intel's notebook-oriented solution in its desktop iMac was a logical move.

Currently iMacs, starting at $1,299 for a 17-inch version with a 1.83 GHz processor, 160GB hard drive and 512MB RAM. A 20-inch version with 2.0 GHz processor and a 250GB drive is $1,699.