Analyst Daniel Kunstler says component prices for the iMac were so high as to force the company to raise prices on all new iMac models by $100. While this is a good thing that the company is taking steps to protect its margins, he believes Apple took this step very reluctantly, as rising prices are a rarity in the personal computer industry. He believes profitability on new machines may have come close to evaporating in the quarter. Kunstler cut his $0.11 Q2 EPS estimate to $0.06, and trimmed the $1.45 billion revenue estimate to $1.35 billion. Kunstler maintains his $25 12-month target.