“Apple prepares to enter the low-cost laptop market for the first time – mediaApple Inc. is developing a budget Mac, codenamed J700, that will cost less than $1,000 to compete with Chromebooks and entry-level
Windows PCs. The device, powered by an iPhone processor and featuring an LCD display, is aimed at students and users who browse
the web and work with documents.
”, — write: unn.ua
DetailsAccording to media reports, the new device, designed for students, businesses, and casual users, will target people who primarily browse the web, work with documents, or do light media editing, according to sources familiar with the matter. Apple is also targeting potential iPad buyers who might prefer a traditional laptop.
The device, codenamed J700, is currently undergoing active testing at Apple and is in the early stages of production with foreign suppliers. The Cupertino, California-based company plans to launch it in the first half of next year, said sources who asked not to be named because the product has not yet been announced.
An Apple spokesperson declined to comment.
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AdditionallyBloomberg noted that this move would be a strategic shift for Apple, which has traditionally focused on premium devices with significant profit margins. The company has also vowed not to chase market share with lower-end offerings.
But Apple faces a growing threat from Chromebooks, low-cost laptops running Google’s Chrome OS operating system. There is also a potential opportunity to attract Windows customers. Microsoft Corp.’s move to Windows 11 has angered some users of previous-generation software and left them without security updates.
Shares of personal computer maker HP Inc. briefly fell to a session low after the news. Shares and shares of PC maker Dell Technologies Inc. were down about 2% as of 12:03 p.m. in New York. Apple rose less than 1% to $270.25.
Apple plans to sell the new device for significantly less than $1,000, using less advanced components. The laptop will be based on an iPhone processor and a lower-end LCD display. The screen will also be the smallest of any current Mac, slightly smaller than the 13.6-inch used in the MacBook Air.
This is the first time Apple has used an iPhone processor in a Mac, rather than a chip designed specifically for a computer. But internal tests have shown that the smartphone chip can perform better than the Mac-optimized M1, which was used in laptops a few years ago.
Apple has long used iPhone chips to power iPads, but a few years ago, it switched to M-series processors for higher-end models in these devices.
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The company previously experimented with the market by selling the M1 MacBook Air at a discount for less than $700 through Walmart Inc. and other retailers. But the upcoming model will feature an entirely new design, not an old device at a discount.
Currently, Apple’s cheapest Mac is the M4 MacBook Air for $999, a price that can drop to $899 with educational discounts. Meanwhile, Chromebooks sell for just a few hundred dollars, with premium versions reaching around $600.
In schools, Apple’s entry-level iPad combined with the Magic Keyboard Folio is popular, costing approximately $600. The new Mac will be in roughly the same range but will offer better battery life, greater flexibility provided by macOS software, and a built-in keyboard. This could appeal to both students and consumers.
According to IDC, Apple held about 9% of the global PC market in the third quarter. It ranks fourth in the industry, behind Lenovo Group Ltd., HP, and Dell, which sell Windows or ChromeOS devices.
A much cheaper Mac that retains Apple’s design and works seamlessly with the company’s other products could spur a new wave of Mac adoption, especially in the US, where the iPhone dominates.
The Mac segment was already the fastest-growing hardware category for Apple last quarter, rising 13% to $8.73 billion. That growth is expected to slow this quarter, but mainly because Apple will introduce only one new model in the period: an entry-level MacBook Pro with an M5 chip.
The company plans a series of updates in 2026. In addition to the new low-end laptop, Apple has completed work on the M5 MacBook Air, which is due out early next year, as well as M5 Pro and M5 Max-based MacBook Pros.
Also in the pipeline: new M5 and M5 Pro Mac mini models, as well as M5 Max and M5 Ultra Mac Studio updates. And an updated MacBook Pro with an M6 chip and an iPhone-style OLED touchscreen is planned for late 2026 or early 2027. Apple will also introduce two new external displays for Mac.