Apple Ventures into the Affordable Laptop Market
[LOS ANGELES] In a notable strategic pivot, Apple is embarking on its inaugural foray into the budget laptop niche, meticulously designing an economical Mac to attract consumers away from Chromebooks and entry-level Windows notebooks.
The forthcoming device, tailored for students, business professionals, and casual users alike, is specifically aimed at those whose online activities predominantly encompass web browsing, document creation, or light media editing.
There is also an intention to appeal to potential iPad purchasers who may favor a traditional laptop format.
Internally referred to as J700, this new machine is currently undergoing vigorous testing at Apple’s facilities and is in the nascent stages of production with international suppliers.
Sources, speaking on the condition of anonymity due to the unannounced nature of the product, indicate that the launch is slated for the first half of the upcoming year.
When approached for commentary, a representative from Apple refrained from providing insights.
This development signifies a paradigm shift for Apple, a company renowned for its emphasis on premium devices with substantial profit margins. Historically, the corporation has pledged not to pursue market share through budget-oriented products.
However, Apple is now confronting an increasing challenge from the growing popularity of Chromebooks, the economical laptops powered by Google’s Chrome OS.
Additionally, there exists a viable opportunity to captivate users of Windows, especially those discontented with the recent transition to Windows 11, which has frustrated some long-time users of its predecessor.
The revelation of Apple’s intentions momentarily impacted shares of HP, causing a brief dip. By 12:03 PM in New York, stock values for HP and fellow PC manufacturer Dell Technologies had fallen by around 2 percent. In contrast, Apple’s shares experienced a marginal increase of less than 1 percent, reaching US$270.25.
Apple’s strategy entails pricing the new machine considerably below US$1,000 through the utilization of less advanced components. This laptop will incorporate an iPhone processor and a more modest LCD display.
Notably, this screen will be the smallest across all current Mac offerings, slightly under 13.6 inches—the size featured in the MacBook Air.
This initiative marks a first for Apple, as it will utilize an iPhone chip in a Mac, deviating from the traditional approach of using computer-specific processors.
Nevertheless, internal evaluations have demonstrated that this smartphone chip can outperform the Mac-optimized M1 found in previous laptops.
Historically, Apple has leveraged iPhone chips for its iPad lineup, but has transitioned those devices to M-series processors for its high-end offerings over recent years.
Previously, Apple tested the waters with a discounted M1 MacBook Air, priced below US$700 through retail partners like Walmart. Yet, the forthcoming model is anticipated to represent an entirely new design, distinguishing it from merely a rebranded older unit.
Currently, Apple’s most affordable Mac is the US$999 M4 MacBook Air, a price that can be reduced to US$899 with educational discounts. In stark contrast, Chromebooks are available for just a few hundred dollars, with premium models topping out around US$600.
In educational settings, Apple’s basic iPad, when coupled with the Magic Keyboard Folio, is a favored option, totaling an approximate cost of US$600.
The introduction of this new Mac could similarly resonate within that price range while providing superior battery life, the versatility inherent in macOS software, and an integrated keyboard—features likely to appeal to both students and general consumers.
As of the third quarter, Apple commanded approximately 9 percent of the global PC market, according to IDC, positioning it fourth in the industry behind Lenovo Group, HP, and Dell, all of which primarily market Windows or ChromeOS machines.
An affordable Mac that retains Apple’s hallmark design and seamlessly integrates with its ecosystem may catalyze a new wave of Mac adoption, particularly in the United States, where the iPhone remains dominant.
Notably, the Mac segment emerged as Apple’s fastest-growing hardware category last quarter, surging 13 percent to US$8.7 billion.
Although anticipated growth may temper this quarter, mainly due to a singular new model release—the entry-level MacBook Pro with an M5 chip—Apple’s future appears robust.
Looking ahead to 2026, the company has an array of updates in the pipeline. Beyond the new low-end laptop, an M5 MacBook Air is scheduled to debut early in the year, accompanied by new M5 Pro and M5 Max-powered MacBook Pros.
The roadmap also includes new M5 and M5 Pro Mac mini models, alongside M5 Max and M5 Ultra Mac Studio updates.
Furthermore, a revamped MacBook Pro is slated for release, showcasing an M6 chip and a touch-responsive OLED display reminiscent of the iPhone, anticipated for late 2026 or early 2027. Apple will also unveil two new external Mac displays.
Source link: Businesstimes.com.sg.
