Apple Targets Budget Laptop Market with New MacBook Under $1,000

Mark Gurman, the well-known Apple product leaker who has accurately predicted several iPhone updates, reported that Apple is preparing to enter the budget laptop market for the first time. The company is developing an affordable version of the MacBook aimed at attracting customers who prefer lightweight, budget-friendly laptops, specifically targeting competitors like Chromebook PCs and entry-level Windows PCs.

This new device—designed for students, businesses, and everyday users—will target individuals who mainly browse the web, handle documents, or perform light media editing. Apple is also looking to appeal to those who might consider buying an iPad but prefer the traditional laptop experience.

The new MacBook, codenamed "J700," is currently being actively tested within Apple and is gradually entering the early production phase with overseas suppliers. These unnamed sources stated that Apple plans to launch this new laptop in the first half of next year. Apple declined to comment on the report.

This move could represent a significant strategic shift for Apple, as the company has traditionally focused on high-margin, premium consumer electronics. Apple had previously vowed not to chase market share expansion through low-end products.

However, Apple faces growing competition from low-cost Chromebook laptops running Google's Chrome OS, while there is also a major potential opportunity to attract Windows PC users. Microsoft's overhaul of its Windows 11 operating system has frustrated users of older software versions, causing them to lose access to key security and technical updates.

Following news of Apple's potential push into the budget laptop market, shares of PC manufacturers such as HP (HPQ.US) briefly dropped to a session low. By Tuesday's market close, shares of HP and Dell Technologies (DELL.US) had fallen over 3%. Meanwhile, Apple's stock saw a modest increase of 0.37%, closing at $270.04.

Challenge to Chromebooks

Apple plans to keep the price of this new laptop below $1,000 by using lower-spec components. The laptop will feature an iPhone processor known for its low power consumption and high efficiency, paired with a reasonably priced mid-to-low-end LCD screen. The screen size will be the smallest among all current MacBooks, slightly smaller than the 13.6-inch display of the MacBook Air.

This would mark the first time Apple uses an iPhone processor in a MacBook, as opposed to a chip specifically designed for laptops. However, Gurman noted that Apple's latest internal tests have shown that the performance of this high-end smartphone chip is significantly superior to the Mac-optimized M1 chip that was used in laptops just a few years ago.

For years, Apple has used customized SoC chips from iPhones to drive its iPad models, but the high-end versions of those devices have since switched to M-series processors.

Apple has previously tested the budget laptop market by selling discounted M1 MacBook Air models at prices below $700 at retailers like Walmart and other major U.S. consumer electronics outlets. But the upcoming laptop will be a completely new design, not a discount on older models.

Currently, Apple's cheapest Mac is the $999 M4 MacBook Air, which can be purchased for as low as $899 with an educational discount. Meanwhile, Chromebooks start at a few hundred dollars, with high-end versions priced around $600.

In the school-level market, Apple's entry-level iPad paired with the Magic Keyboard Folio is a popular combination for students, priced at around $600. The new MacBook is expected to fall within the $600 to $900 price range, offering better battery life, more flexibility with macOS, and an integrated keyboard, making it an appealing option for both students and general consumers.

The New Affordable Mac Could Boost Apple's PC Market Share

According to market research firm IDC, Apple held around 9% of the global PC market in Q3, ranking fourth behind Lenovo, HP, and Dell—companies that primarily sell Windows and ChromeOS devices.

A cheaper, yet still stylish Mac with seamless integration into Apple's broader ecosystem could spark a new wave of Mac adoption, especially in the U.S., where the iPhone is dominant. This could potentially lead to an increase in Apple's share of the PC market.

Mac sales have become Apple's fastest-growing hardware category. Revenue from Macs grew around 13% to $8.73 billion in the last quarter. This growth is expected to slow somewhat in the current quarter, mainly because Apple only launched one new Mac model during this period: the entry-level MacBook Pro with the M5 chip.

Apple plans to release a series of significant updates in 2026. In addition to the new low-cost laptop, Apple has completed part of the development of the M5 MacBook Air, which is expected to be launched early next year, along with high-end MacBook Pro models featuring the M5 Pro and M5 Max chips.

Other upcoming Apple products include new M5 and M5 Pro Mac mini models, as well as updated versions of the M5 Max and M5 Ultra Mac Studio. Furthermore, Apple is planning to release a new MacBook Pro with an OLED touch display, powered by the M6 chip, in late 2026 or early 2027. The company will also introduce two new external Mac displays.