The announcement of the iMac in 1998 was a source of discussion and anticipation among commentators, Mac fans, and detractors. Opinions were divided over Apple's drastic changes to the Macintosh hardware. At the time, Apple was trying to improve its retail strategy. Apple declared that "the back of our computer looks better than the front of anyone else's".[1]

Apple declared the 'i' in iMac to stand for "Internet"; it also represented the product's focus as a personal device ('i' for "individual").[2] Attention was given to the out-of-box experience: the user needed to go through only two steps to set up and connect to the Internet. "There's no step 3!" was the catch-phrase in a popular iMac commercial narrated by actor Jeff Goldblum.[3] Another commercial, dubbed "Simplicity Shootout", pitted seven-year-old Johann Thomas and his border collie Brodie, with an iMac, against Adam Taggart, a Stanford University MBA student, with an HP Pavilion 8250, in a race to set up their computers. Johann and Brodie finished in 8 minutes and 15 seconds,[4] whereas Adam was still working on it by the end of the commercial. Apple later adopted the 'i' prefix across its consumer hardware and software lines, such as the iPod, iBook, iPhone, iPad and various pieces of software such as the iLife suite and iWork and the company's media player/store,iTunes.

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On July 27, 2010, Apple updated its line of iMacs to feature the new Intel Core processors across the line. The 21.5" models, including the low end 27" now feature the Core i3 processor but these are upgradable to the Core i5. The high end 27" features a Quad-Core i5 processor, which is upgradable to a Quad-Core i7. On this date Apple also announced its new "Apple Magic Trackpad" peripheral, a trackpad similar to that of the Macbook Pro for use with the iMac, or any other Apple computer. They also introduced their first ever AA NiMH battery charger intended to simplify the use of batteries in its new peripherals. Apple offers an option to use a solid state hard drive instead of a large mechanical drive.