One week ago Wu reported that Apple was in the "midst of figuring out whether to power the new iMac with Intel quad-core processors or more high-powered dual-core processors with larger caches."
In his note to clients today, Wu now claims "that both types of processors will likely be used," which would "makes sense as this helps Apple create better tiers within the iMac family, utilizing quad-core for the high-end, and dual-core for mid-range and low-end."
He went on to say that "We believe having both strong portables and desktops will help the Mac sustain its above-market rate growth rates and maintain its momentum in this tough macroeconomic environment."
"As Apple mentioned briefly on its earnings call, Mac Pro sales have become less important and less attractive in this tough economic environment," he told clients. "However, we think a refresh utilizing upcoming Intel 'Nehalem' 8-core processors (and with two enabling a 16-core) would bring it better price performance and help jump start this highly profitable segment."