Apple is rumored to extend the current iMac line at the low-end.
Apple's latest iMac line-up starts at $1,199. This is supposed to change this month. 9to5Mac reports that Apple is releasing a sub-$1,000 21.5-inch iMac with lower specs as early as August 16. The new low-cost iMac is geared towards the educational market. Such a low-cost iMac for the Edu market has been offered before at a price of $899.
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The Apple Back To School promotion is still going on until September 20. This means the new $999 or $899 iMac will qualify for the free $100 Back to School Card to use on the Mac App Store, the App Store, the iTunes Store, and the iBookstore.
New $999 iMac is already on sale. Sorry, only for Schools.