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Apple continued to sell this line of iMacs until March 2003, mainly to customers who wanted the ability to run the older Mac OS 9 operating system. This second-generation iMac featured a slot-loading optical drive, FireWire, 'fanless' operation (through free convection cooling), and the option of AirPort wireless networking.

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A later hardware update created a sleeker design. Aside from increasing processor speed, video RAM, and hard-disk capacity, Apple replaced Bondi Blue with new colors-initially blueberry, strawberry, tangerine, grape, and lime later other colors, such as graphite, ruby, sage, snow, and indigo, and the 'Blue Dalmatian' and 'Flower Power' patterns. The iMac line was continually updated after initial release. IMac G3 'flavours' which replaced Bondi Blue. The hard drive in the iMac G3 was a Quantum Fireball. According to an article in the German computer magazine c't, the socket can be retrofitted on revision C iMacs.

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It was only for internal use by Apple, although a few third-party expansion cards were released for it, such as a Voodoo II video card upgrade from 3dfx and SCSI/SCSI- TV tuner cards (iProRAID and iProRAID TV) from the German company Formac this was removed from later iMacs. Although the iMac did not officially have an expansion slot, the first versions had a slot dubbed the 'mezzanine slot'. Parts such as the front-mounted IrDA port and the tray-loading CD-ROM drive were borrowed from the Apple laptops.

It sold for US$1,299, and had a 4В GB hard drive, 32В MB RAM, 2В MB video RAM, and shipped with Mac OS 8.1, which was soon upgraded to Mac OS 8.5. The original iMac had a 233В MHz PowerPC G3 (PowerPC 750) chip, with 512 KB L2 cache running at 116.6В MHz, which also ran in Apple's high-end Power Macintosh line at the time, though at higher speeds, with more expensive models shipping with 1 MB L2 cache. Although the promise of CHRP has never been fully realized, the work that Apple had done on CHRP significantly helped in the designing of the iMac. Internally, the iMac was a combination of the Macintosh NC project and CHRP.

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Eventually, a new oblong optical mouse, known as the Apple Pro Mouse (later 'Apple Mouse'), replaced the round mouse across all of Apple's hardware offerings. Apple continued shipping the round mouse, adding a divot in later versions so that users could distinguish where the button was. The mouse was of a round, ' hockey puck' design, which was instantly derided as being unnecessarily difficult for users with larger hands. The keyboard was smaller than Apple's previous keyboards, with white letters on black keys, both features that attracted debate. The keyboard and mouse were redesigned for the iMac with translucent plastics and a Bondi Blue trim (Apple USB Keyboard and Apple USB Mouse). At the iMac's introduction, third-party manufacturers offered inexpensive external USB diskette drives. Apple's move was considered ahead of its time and was hotly debated. Apple argued that recordable CDs, the internet, and office networks were quickly making diskettes obsolete. ДЄ radical step was to abandon the 3ВЅ-inch floppy drive (which had been present in every Mac since the first one in 1984).

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The iMac was the first computer to offer USB ports as standard, including the connector for its new keyboard and mouse, thus abandoning previous Macintosh peripheral connections, such as the ADB, SCSI and GeoPort serial ports.

Jonathan Ive, currently Vice President of Industrial Design at Apple, is credited with the industrial design. Dual headphone jacks in the front complemented the built-in stereo speakers. There was a handle, and the computer interfaces were hidden behind a door that opened on the right-hand side of the machine. It was made of translucent ' Bondi Blue'-colored plastic, and was egg-shaped around a 15-inch (38В cm) CRT. The company announced the iMac on and started shipping it on August 15, 1998.ДЄesthetically, the iMac was dramatically different from any other mainstream computer ever released. Having discontinued the consumer-targeted Performa series, Apple needed a replacement for the Performa's price point. Steve Jobs streamlined the company's large and confusing product lines immediately after becoming Apple's interim CEO in 1997 toward the end of the year, Apple trimmed its line of desktop Macs down to the beige Power Macintosh G3 series, which included the iMac's immediate predecessor, the G3 All-In-One, which featured nearly identical specifications and was sold only to the educational market.

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