Apple introduced a new 21.5-inch iMac with downgraded specifications to meet the entry-level tag price of $1,099.

Apple, the renowned smartphone, PC and laptop manufacturer, is reaching out to a new group of people who have been unable to purchase its premium line of iMacs due to hefty price tags. The Cupertino tech titan introduced a new iMac $200 cheaper than the usual starting price for its all-in-one computer. The all-new 21.5-inch iMac is an entry-level all-in-one computer that comes with downgraded specifications compared to other iMacs.

The new 21.5-inch iMac features a 1.4 GHz dual-core Intel Core i5 processor with Turbo Boost up to 2.7GHz, Intel HD 5000 graphics, 8GB memory and 500GB onboard hard drive storage. The new iMac is equipped with the next generation 802.11ac Wi-Fi, two Thunderbolt ports and four USB 3.0 ports. Running the latest OS X Mavericks out of the box, the 21.5-inch iMac will get the OS X 10.1 Yosemite update later this fall.

If the on-board specifications do not match your needs, Apple offers configure-to-order options for additional charges, of course. Buyers can throw in a 1TB hard drive for an extra $50, 1TB Fusion Drive for $250 or 256GB flash storage for $250 on top of the iMac's selling price. Accessories such as the Apple Magic mouse can be swapped with magic track-pad or Apple mouse for free, but pay an extra $69 for both magic mouse and magic track-pad. Buyers can choose from a wide range of accessories, including printer, Apple TV, time capsule, external thunderbolt storage and more.

For Apple, the price cut along with downgraded specs may seem like a pretty big move, but compared to Windows desktops from HP, Acer, Dell and other companies, even the base iMac seems rather expensive. Apple recently dropped the price of its MacBook Air laptops by $100 but did not lower the on-board specs. In fact it slightly boosted the configuration, which is still acceptable considering the price drop.

But by introducing the new cheap iMac, Apple has seriously stepped down from its premium race. As Forbes points out, Apple has "dramatically sacrificed both the performance and the storage capacity (half of the previous low-end iMac) of its new low-cost desktop computer."

If the affordable iMac is still the way to go, the 21.5-inch iMac is available alongside the other high-end iMacs in authorized Apple stores and on its online stores for starting $1,099 in the US or £899 in the UK.