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1. Your chip won't even work.
2. The iMac's chips are soldered on, I believe, so unless you want to desolder every single pin and then replace with a chip that actually works (not the one you linked to), don't try.

so imac's just can't be upgraded?
 
They do hold their value very well so best way to "upgrade" is to buy a refurb then sell it a year later privately and buy another refurb of the latest model. It will cost you a bit but by buying a refurb in the first place you will minimise your losses and will probably spend no more than you would upgrading the CPU alone.

Personally, I'm taking a different approach - I'm treating my iMac as a 5 year investment and have bought Applecare to keep it under warranty for the first three years. So far it is 18 months old and still feels like new so I'm confident it will last me for at least 3, possibly 5 years before I feel compelled to buy a new one. At that time I'll probably just keep the old machine as a spare or for my kids.

Craig.
 
The voiding only occurs if you break something while you are in there.

The voiding occurs the second you open your iMac up, since you're not an authorized Apple service technician. If Apple has to service the machine there are several ways to tell if it has been worked on previously.
 
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