Apple prepares to sell low-cost laptops for the first time

Apple is preparing to enter the low-cost laptop market for the first time, developing a budget Mac aimed at luring away customers from Chromebooks and entry-level Windows PCs.

The new device — designed for students, businesses and casual users — will target people who primarily browse the web, work on documents or conduct light media editing, according to people familiar with the matter. Apple is also targeting would-be iPad buyers who might prefer a traditional laptop experience instead.

Apple’s cheapest Mac currently is the M4 MacBook Air, which starts from $1699.

Code-named J700, the machine is currently in active testing at Apple and in early production with overseas suppliers. The Cupertino, California-based company plans to launch it in the first half of next year, said the people, who asked not to be identified because the product hasn’t been announced.

An Apple spokesperson declined to comment.

The move would represent a strategic shift for Apple, which has historically focused on premium devices with hefty profit margins. The company also has vowed not to chase market share with lower-end offerings.

But Apple is facing a growing threat from Chromebooks, the low-cost laptops that run Google’s operating system, Chrome OS. There’s also a potential opportunity to entice Windows customers. Microsoft’s shift to Windows 11 has rankled some users of the previous-generation software and left them without security updates.

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Shares of personal computer maker HP briefly dipped to a session low on the news. HP’s stock and that of fellow PC maker Dell Technologies were both down about 2 per cent as of 12:03 pm in New York. Apple gained less than 1 per cent to $US270.25.

Apple plans to sell the new machine for well under $US1000 ($1500) by using less-advanced components. The laptop will rely on an iPhone processor and a lower-end LCD display. The screen will also be the smallest of any current Mac, coming in at slightly below the 13.6-inch one used in the MacBook Air.

This would mark the first time that 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-optimised M1 used in laptops as recently as a few years ago.

Apple has long used iPhone chips to power the iPad but shifted those devices to its M-series processors for higher-end models a few years ago.

The company has previously experimented with the market by selling a discounted M1 MacBook Air for under $US700 through Walmart and other US retailers. But the upcoming model will be an entirely new design, rather than a discounted older machine.

Apple’s cheapest Mac currently is the $US999 M4 MacBook Air ($1699 in Australia) — a price that can drop to $US899 with educational discounts. Chromebooks, meanwhile, sell for as little as a few hundred dollars, with premium versions reaching about $US600.

In schools, Apple’s entry-level iPad paired with the Magic Keyboard Folio is a popular setup, costing roughly $US600 combined. The new Mac would fall in a similar range but offer better battery life, the greater flexibility that comes with the macOS software and an integrated keyboard. That could appeal to students and consumers alike.

Apple held about 9 per cent of the global PC market in the third quarter, according to IDC. It ranks fourth in the industry, trailing Lenovo, HP and Dell — all of which sell Windows or ChromeOS devices.

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A much cheaper Mac that maintains Apple’s design and works smoothly with the company’s other products could spur a new wave of Mac adoption — particularly in the US, where the iPhone dominates.

Already, the Mac segment was the fastest-growing hardware category for Apple last quarter, rising 13 per cent to $US8.73 billion. That growth is expected to decelerate this quarter, but mainly because Apple will only have one new model in the period: the entry-level MacBook Pro with an M5 chip.

The company is planning a flurry of updates in 2026. Beyond the new low-end laptop, Apple has finished work on an M5 MacBook Air due early in the year, as well as M5 Pro and M5 Max-powered MacBook Pros.

Also on the road map: new M5 and M5 Pro Mac mini models and M5 Max and M5 Ultra Mac Studio updates. And there’s a revamped MacBook Pro with an M6 chip and an iPhone-style OLED touch screen planned for late 2026 or early 2027. Apple will debut two new external Mac displays as well.

Bloomberg

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