Apple is preparing to enter the low-cost laptop market for the first time, developing a budget Mac with the aim of attracting customers who currently use Chromebooks and entry-level Windows PCs.
The new device — aimed at students, businesses and casual users — will be aimed at people who primarily browse the internet, work with documents or do light media editing, according to sources close to the matter. Apple is also targeting potential iPad buyers who might prefer the traditional laptop experience.
Codenamed J700, the machine is in active testing at Apple and in early production with suppliers abroad. The Cupertino, Calif., company plans to launch it in the first half of next year, said the sources, who requested anonymity because the product has not yet been announced.
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An Apple spokesperson declined to comment.
This initiative represents a strategic shift for Apple, which has historically focused on premium devices with high profit margins. The company had also promised not to seek market share with low-cost products.
But Apple faces a growing threat from Chromebooks, cheap laptops that run Google’s Chrome OS operating system. There is also a potential opportunity to attract Windows customers, as Microsoft’s transition to Windows 11 upset some users of the previous version, who were left without security updates.
Shares of PC maker HP fell briefly following the news, while Dell fell about 2% in New York. Apple shares rose less than 1% to $270.25.
Apple plans to sell the new laptop for well under $1,000, using less advanced components. The device will have an iPhone processor and a lower quality LCD screen. The screen will be the smallest among current Macs, at just under 13.6 inches, the size used in the MacBook Air.
This will be the first time Apple has used an iPhone processor in a Mac, rather than a chip designed specifically for computers. But internal tests have shown that the smartphone chip can outperform the Mac-optimized M1 used in laptops until just a few years ago.
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Apple previously used iPhone chips to power the iPad, but has moved those devices to M-series processors for more advanced models.
The company has already tested the market by selling a discounted MacBook Air M1 for less than $700 at stores like Walmart. But the new model will be an all-new design, not a discounted old version.
Apple’s cheapest Mac currently is the MacBook Air M4, which costs $999 — and can drop to $899 with educational discounts. Chromebooks, meanwhile, start at a few hundred dollars, with premium versions costing around $600.
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In schools, Apple’s entry-level iPad combined with the Magic Keyboard Folio is a popular configuration, costing about $600 in total. The new Mac would be in a similar price range, but would offer better battery life, greater macOS flexibility and an integrated keyboard, which could appeal to students and general consumers.
In the third quarter, Apple held about 9% of the global PC market, according to IDC. The company ranks fourth in the sector, behind Lenovo, HP and Dell — all selling devices with Windows or ChromeOS.
A much cheaper Mac that maintains Apple’s design and works well with its other products could drive a new wave of Mac adoption — especially in the US, where the iPhone dominates.
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The Mac segment was the fastest growing hardware category for Apple in the last quarter, with an increase of 13%, reaching US$8.73 billion. The expectation is that growth will slow down this quarter, mainly because Apple will only have one new model in the period: the basic MacBook Pro with M5 chip.
The company plans a series of updates for 2026. In addition to the new entry-level laptop, Apple has finalized the MacBook Air M5, scheduled for the beginning of the year, in addition to the MacBook Pros with M5 Pro and M5 Max chips.
Also on the roadmap are new Mac mini models with the M5 and M5 Pro, Mac Studio updates with the M5 Max and M5 Ultra, and a redesigned MacBook Pro with an M6 chip and iPhone-style OLED touchscreen, expected in late 2026 or early 2027. Apple will also launch two new external displays for the Mac.
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