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What are the differences between the original Apple TV and the Mac mini available at the time of its introduction?
Please note that all models mentioned in this Q&A have been discontinued. The original Apple TV was replaced by the black second generation Apple TV on September 1, 2010.
Although the Apple TV and Mac mini look similar, each is targeted toward very different users. The Apple TV is designed to make it easy to present the iTunes content stored on as many as five household computers -- Mac or PC -- on a recent television.
The Mac mini, on the other hand, is substantially more powerful. It is a full-fledged Mac that allows one to do just about anything that can be done on any other entry-level computer -- play DVD movies, listen to music with iTunes, surf the Internet, write documents, create websites, retouch photos, and so forth.

Photo Credit: Apple, Inc. (Apple TV - Left, Mac mini - Right)
Please note that these images are not to scale. The Apple TV (on the left) is roughly half the size -- 1.1 inches tall, 7.7 inches wide, and 7.7 inches deep -- of the already minute Mac mini (on the right), which is 2.0 inches tall, 6.5 inches wide and 6.5 inches deep.
The Mac mini can be connected to a television -- recent or otherwise -- and do everything the Apple TV can do through Front Row, as well as support higher-resolution H.264 playback and 5.1 channel surround sound. The Mac mini can be configured to receive programming "streamed" from another computer as well. It also plays CDs and DVDs, and with third-party solutions -- and additional cost -- it can be configured to record programming from television.
The Mac mini also can easily support peripherals and external hard drives without hacking. Essentially, far more diverse software and more powerful hardware combine to make the Mac mini substantially more versatile. This versatility, however, comes at a price, as the entry-level configuration of the Mac mini "Core 2 Duo" 2.0 (Early 2009) costs US$599, compared an original entry price of US$299 for the Apple TV (dropped to US$229 for the 40 GB configuration on January 15, 2008, and on September 14, 2009, Apple discontinued the 40 GB model and reduced the price of the 160 GB configuration to US$229.)
The Apple TV also has an HDMI port, component video out, and optical digital audio out ports for easier and higher-quality connections to recent televisions. The Mac mini, on the other hand, only has DVI, Mini-DVI, and/or Mini DisplayPort out (depending on model) and optical digital audio out.
Ultimately, those who want a simple and easy way to view iTunes content -- and as of January 15, 2008, rent movies -- on a recent television probably would find the Apple TV to be of interest, whereas those interested in either a compact entry-level computer or a more full-featured "media center" -- complete with support for numerous file formats, a CD/DVD player, and the option of recording television -- would find the extra functionality of the Mac mini to be well worth the extra cost.
Also see: What are the "pros and cons" of the original Apple TV?
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