Oh these are juicy....
There is no doubt that Apple was impressed when they were shown the expected performance of Conroe - and this is likely one of the reasons why they picked Intel as their new CPU provider for their machine line-up. However, it looks as if Apple are going to have very distinct boundaries with the Intel CPUs. With the old SKUs of Apple products (iBook, PowerBook, Power Mac) they used the same CPUs across the board, just at the different clock frequencies and in different numbers. Apple are using Yonah within the iMac, MacBook Pro and the Mac Mini - as they have already shown.
The plans for the iMac and the MacBook are to have Merom in them (Intel's next-generation mobile processor) but it looks like the Mac Mini will just see clock increases for the time being.
Apple plan to use Conroe purely for their high-end PowerMac workstation systems, replacing the G5. While we can understand this, and see the business sense (upsell) we are not sure how consumers will see it, since before they enjoyed the fact each Mac had pretty much the same CPU inside, but at different clock speeds. They don't plan to bring a Xeon (Woodcrest) based SKU to the PowerMac
With this being the case, how will Apple get performance? The move from a Dual 2.7GHz (Dual Core) to a Single (Dual Core) Conroe? We know that Intel likes Apple but surely not enough to open up the Conroe to run in Multi CPU configuration - meaning Dell wouldn't be too happy right? Currently the only solution open to Apple is to use a Xeon CPU - thus they may need to take WoodCrest and put it in the PowerMac even if they don't want to, Multi-core is too far away.
So, this will give clearer distinction between products; some for the Consumer, some for Prosumer, and some for high performance.
Currently Apple are not planning to use any of the Core Xeon CPUs within their non server line-ups.
Another rumour which has been muttered is that Apple are looking in to multi-GPU solutions, but not for the consumer, rather purely for the professional content creation/workstation market.