“Does it have Intel Core i7 processor? if yes, why specs say 2.5GHz rather than 3.5GHz processor?”
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Yes it is an Intel Core i7 model; it's 2.5GHz instead of 3.5GHz because it is the non-Touch Bar model. To get the 3.5GHz you would have to purchase the computer as a custom-build directly from Apple.
Yes, this has a 2.5 GHz Intel Core i7 processor