The iMac marked a turning point at Apple, in a similar fashion as the Mac, 15 years earlier. It was presented in an "all-in-one" package, and marketed for the masses - some criticized the lack of a floppy drive (it only has an optical drive and network connections) - however, floppies were already being phased out (and more than 10 years later, it is getting increasingly difficult to spot a new computer which still has a floppy drive!). USB floppy drives were available for those who wanted them, in matching colors.
Steve Jobs did in 1998 (after returning to the company he founded) a sort of a contingency plan in order to "save" Apple: besides the widely known "alliance" with Microsoft, he killed a number of side-projects, and converged the chaotic product lines into only four lines: consumer desktop (iMac) and laptop (iBook); and professional desktop (PowerMac) and laptop (PowerBook).
The iMac I have here is not the first version (the first 1998 version only came in this color, Bondi blue, but the later 1999 revisions came in five different colors, Bondi included...). This one has a faster 333 MHz G3 processor, and had both its internal hard drive and memory upgraded by the previous owner.
Later (2000 and 2001) G3 versions had clearer cases (and an array of different colors and patterns to choose), DVD and CD-RW drives, and even FireWire ports. This CRT all-in-one style did not disappear entirely afterwards, but reappeared with G4 power in the form of the educational Mac, the eMac (although it was first marketed exclusively for the education market, it soon was also sold to "standard" consumers).