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A Mac for under $500 is still a really attractive choice for many in the market for a new computer, and Apple certainly sells lots of these to people who don’t want the best Mac, but still want a Mac.
But they’re doing it wrong
The Mac mini isn’t really so cheap. You need a keyboard. You need a display. You need a mouse, and while you may have all these things somewhere in your home, the cold reality is that the existing model is completely outclassed by the entry-level iPad in performance terms.