Bloomberg – Apple Inc. (AAPL) is preparing to enter the market of inexpensive notebooks for the first timedeveloping a budget Mac aimed at attracting Chromebook and entry-level Windows PC customers.
The new device – aimed at students, businesses and casual users – will be aimed at people who first and foremost browse the web, work on documents, or do some light media editingaccording to people familiar with the matter. Apple is also targeting potential iPad buyers who prefer traditional laptops.
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The device is codenamed J700is currently in testing at Apple and in the early stages of production with overseas suppliers. The Cupertino, Calif.-based company plans to launch it in the first half of next year, according to the sources, who spoke on condition of anonymity because the product has yet to be officially announced.
An Apple representative declined to comment.
The move would mark a strategic shift for Apple, which has historically focused on high-margin premium devices. The company also made a commitment Don’t compete for market share with low-end products.
But Apple faces a growing threat from Chromebooks, inexpensive laptops that run Google’s Chrome OS. In addition, there is a potential opportunity to attract Windows users. Microsoft Change (MSFT) in Windows 11 caused discomfort for some users of the previous generation software and left them without security updates.
Apple plans to sell new hardware well under US$1000 using less advanced components. The laptop will include the iPhone’s processor and a low-end LCD screen. The screen will also be the smallest of any Mac today, slightly smaller than the 13.6-inch MacBook Air.
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This would be the first time Apple has used an iPhone processor in a Mac, rather than a chip designed specifically for a computer. But internal testing has shown that the smartphone chip can perform better than the Mac-optimized M1 used in laptops just a few years ago.
Apple has long used iPhone chips to power iPadsbut a few years ago it replaced those units for M-series processors with high-end models.
The company previously experimented with the market by selling the M1 MacBook Air at a discount of less than $700 through Walmart Inc. (WMT) and other sellers. But the next model will be a completely new design, not a watered down old car.
Apple’s cheapest Mac at the moment is the $999 MacBook Air M4, the price can drop to $899 with student discounts. Chromebooks, meanwhile, sell for several hundred dollars, with premium versions reaching $600.
In schools, Apple’s basic iPad with the Magic Keyboard Folio is a popular configuration at around $600. The new Mac will be priced the same, but will offer longer battery life, more flexibility provided by macOS software, and a built-in keyboard. This can be attractive to both students and consumers.
Apple had about 9% of the global PC market in the third quarter, according to IDC. It ranks fourth in the sector, for Lenovo Group Ltd., HP (HPQ) and Dell (DELL)that sell devices running Windows or ChromeOS.
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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 iPhone-dominated US.
The Mac segment was already Apple’s fastest-growing hardware category last quarter, with an increase of 13% and reached 8.73 billion US dollars. That growth is expected to slow this quarter, mainly because Apple will launch just one new model during the period: Entry-level MacBook Pro with M5 chip.
The company is planning a flurry of updates in 2026. In addition to the new budget notebook, Apple has finished work on the M5 MacBook Air, which will arrive at the beginning of the year, as well as MacBook Pro with M5 and MacBook Pro with M5 Max.
Also on the road map: new Mac mini M5 and M5 Pro models and updates to the Mac Studio M5 Max and M5 Ultra. And there’s an updated MacBook Pro with an M6 chip and an iPhone-style OLED touchscreen, expected in late 2026 or early 2027. Apple is also debuting two new external Mac displays.
Read more at Bloomberg.com
