The New York Times > Technology > Changing Course, Apple Offers Low-Priced Mac for the Home: "The question still remains, however, whether PC users will try Macintosh machines in large numbers.
'This is not going to return Apple to a high level of profitability,' said David Yoffie, a professor at Harvard Business School. 'The margins on these new machines will be trivial. And I think they will add no more than one or two points of market share.'
He said, however, that even a small growth in market share could be enough to attract software developers willing to write programs for the Macintosh."
My $.02: Apple's stock went down ~6.4% yesterday on the new product announcements because Wall Street isn't fond of internally-generated price competition based on speculative market expansion opportunities (with products that have razor-thin profit margins). I suspect many people were also expecting Apple to unveil some innovative Media Center-like offerings, rather than dumbed-down, steeply price-discounted, smaller-footprint versions of their existing products.