Before today, the cheapest Apple offered its iMac was $1,299 - but now that 21.5-inch iMac costs just $1,099. The new entry-level iMac sports a dual-core Intel Core i5 processor at 1.4GHz, 8GB of RAM, a 500GB HDD, 802.11ac Wi-Fi, two Thunderbolt ports, four USB 3.0 ports and Intel HD 5000 graphics.
The previous model that was $200 more, featured a slightly better Core i5 processor, and bigger HDD. But, you can always customize it to your liking, where you could replace the 500GB with a 1TB Fusion drive, or a 256GB SSD - something we would recommend doing (especially the SSD upgrade). We should see another iMac refresh in the future, with Intel's next-gen Broadwell processor baked into them. When that'll happen, is something no one knows right now.