Apple is preparing to launch its first budget MacBook, aimed at students, businesses, and casual users. This marks a revolutionizing change for the company, which has mostly focused on high-end devices. The new MacBook, called J700, is currently being tested and early production has started with suppliers overseas.
Apple plans to sell the new laptop, codenamed J700, for under USD 1,000 by using more affordable components. It is currently being tested at Apple and in early production with overseas suppliers.
The cheapest Mac available right now is the M4 MacBook Air, priced at USD 999, or USD 899 applying a student discount. The new laptop will reflect an iPhone processor as well as a lower-end LCD display, with a screen size just under 13.6 inches, making it the smallest of any current Mac.
This would be the first time Apple has used an iPhone processor in a Mac, instead of a chip designed specifically for computers. Internal tests have shown that the smartphone chip performs better than the Mac-optimized M1, which was used in laptops just a few years ago.
Apple reported Mac sales of USD 8.73 billion in the fourth quarter, exceeding estimates of USD 8.59 billion. Last month, the company also projected holiday-quarter iPhone sales and overall revenue to surpass Wall Street expectations.
The strategic move to offer a budget MacBook reflects Apple's strategy to reach a wider audience, particularly in these competitive markets where lower-priced PCs are taking the market. By utilizing more cost-effective components, Apple focuses on competing with affordable laptops from brands like Dell, Lenovo, etc., along with maintaining its premium brand image. This strategic move could help Apple tap into a new customer base, broadening its influence in the entry-level laptop industry.
