Apple Inc. (AAPL.US) is preparing to enter the budget laptop market for the first time, targeting customers who favor affordable, lightweight devices over Chromebooks and entry-level Windows PCs. According to reliable Apple insider Mark Gurman, the tech giant is developing a low-cost Mac designed for students, businesses, and general users who primarily browse the web, handle documents, or perform light media editing.
The new laptop, codenamed J700, is currently undergoing internal testing and has entered early production stages with overseas suppliers. Apple plans to launch the device in the first half of next year, though the company has declined to comment.
This move signals a strategic shift for Apple, which has historically focused on high-margin premium electronics and avoided chasing market share with low-end products. However, the growing threat from Chromebooks—budget laptops running Google’s Chrome OS—and the potential to attract disgruntled Windows users (following Microsoft’s (MSFT.US) controversial Windows 11 transition) have prompted the change.
Upon the news, shares of PC makers HP (HPQ.US) and Dell (DELL.US) fell over 3%, while Apple’s stock edged up 0.37% to $270.04 amid a broader tech sell-off.
**Priced Below $1,000 to Challenge Chromebooks** Gurman reports that Apple aims to keep the new Mac under $1,000 by using cost-effective components, including an energy-efficient iPhone processor and a mid-range LCD display. The screen size will be smaller than the 13.6-inch MacBook Air, marking the first time Apple uses an iPhone chip instead of a laptop-specific processor in a Mac. Internal tests suggest the smartphone chip outperforms older Mac-optimized M1 processors.
While Apple previously tested the budget segment with discounted M1 MacBook Airs (priced below $700 at retailers like Walmart), the upcoming model is a fresh design, not a repurposed older device. Currently, Apple’s cheapest Mac is the $999 M4 MacBook Air ($899 with education discounts), while Chromebooks start at a few hundred dollars, with premium models around $600.
The new Mac is expected to be priced between $600–$900, offering superior battery life, macOS flexibility, and a built-in keyboard—potentially appealing to students and general consumers alike.
**Boosting Apple’s PC Market Share** Per IDC, Apple holds a 9% global PC market share (Q3), ranking fourth behind Lenovo, HP, and Dell, which dominate Windows and ChromeOS devices. A budget Mac with Apple’s design and ecosystem integration could spur adoption, especially in the iPhone-dominated U.S. market.
Mac sales grew 13% YoY to $8.73 billion last quarter, making it Apple’s fastest-growing hardware category. Growth may slow this quarter due to limited new releases (only an entry-level M5 MacBook Pro), but Apple has a robust 2026 roadmap, including: - M5 MacBook Air (early 2026) - M5 Pro/Max MacBook Pro models - M5/M5 Pro Mac mini updates - M5 Max/Ultra Mac Studio refreshes - A redesigned MacBook Pro with M6 chip and OLED touchscreen (late 2026/early 2027) - Two new external Mac displays.