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Someone commented on a previous thread that the M1 Mac mini hadn't changed form factors despite a reduction in component size, lamenting that it had retained the same size and shape as its on-Intel predecessors.

This is the reason.

Datacenter customers (really, any customers racking minis) likely represent a meaningful share of Mac mini sales. Changing the form factor would mean these high-value customers would need to re-tool their racks to support a new design. Even Apple is not immune to the pressure of large customers.



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