Apple Inc. is reportedly preparing to enter the low-cost laptop market for the first time, developing a budget Mac aimed at attracting customers away from Chromebooks and entry-level Windows PCs. This new device, designed primarily for students, businesses, and casual users, is expected to cater to those who mainly browse the web, work on documents, or engage in light media editing. Furthermore, Apple aims to reach potential iPad buyers who may prefer a traditional laptop experience.
Currently code-named J700, the machine is undergoing active testing at Apple and is in early production stages with overseas suppliers. The company plans to launch the device in the first half of next year, according to sources who wished to remain anonymous due to the lack of an official announcement. An Apple spokesperson declined to comment on the matter.
This move marks a strategic shift for Apple, which has historically concentrated on premium devices with substantial profit margins. The company has previously maintained that it would not seek market share through lower-end offerings. However, Apple is facing increasing competition from Chromebooks, which run Google’s Chrome OS. Additionally, there is an opportunity to attract users from Microsoft Corp., as the transition to Windows 11 has disturbed some users of earlier software versions that lack security updates.
Apple intends to sell the new laptop for significantly less than $1,000 by utilizing less advanced components. The device will feature an iPhone processor paired with a lower-end LCD display, and it will have the smallest screen of any current Mac, measuring slightly less than the 13.6-inch display of the MacBook Air. This will be the first instance of Apple employing an iPhone processor in a Mac, diverging from its previous practice of using chips specifically designed for computers. However, preliminary internal tests indicate that the smartphone chip could outperform the Mac-optimized M1 chip used in previous laptops.
Historically, Apple has powered the iPad with iPhone chips but shifted to M-series processors for its higher-end models a few years back. The company has previously offered discounted M1 MacBook Air units for under $700 through retailers like Walmart, but the new model will represent a new design rather than a discounted older version.
Currently, Apple’s least expensive Mac is the $999 M4 MacBook Air, which can drop to $899 with educational discounts. In comparison, Chromebooks are available for prices as low as a few hundred dollars, with premium versions costing around $600. Apple’s entry-level iPad, when paired with the Magic Keyboard Folio, is a popular setup in schools, totaling approximately $600. The new Mac is expected to fall into a similar price range while providing better battery life and enhanced functionality from macOS, which may attract both students and general consumers.
According to IDC, Apple held about 9 percent of the global PC market in the third quarter and ranks fourth in the industry, trailing Lenovo, HP, and Dell—all of which primarily sell Windows or ChromeOS devices. A more affordable Mac that retains Apple’s design and integrates well with its ecosystem could stimulate a new wave of Mac adoption, especially in the US, where the iPhone is prevalent.
The Mac segment was Apple’s fastest-growing hardware category in the last quarter, increasing 13 percent to $8.73 billion. Although this growth is expected to slow in the current quarter, it is largely due to the launch of only one new model: the entry-level MacBook Pro equipped with an M5 chip.
Looking ahead, Apple is planning multiple updates for 2026. In addition to the new low-cost laptop, the company is set to release an M5 MacBook Air early in the year, along with M5 Pro and M5 Max-powered MacBook Pros. Additionally, new M5 and M5 Pro Mac mini models, M5 Max and M5 Ultra updates for Mac Studio, and a revamped MacBook Pro featuring an M6 chip and an iPhone-style OLED touch screen are anticipated for late 2026 or early 2027. Apple will also introduce two new external Mac displays.
Published on November 5, 2025.
