Apple Developing Budget MacBook to Challenge Chromebook Dominance

Apple Plans Budget MacBook to Compete with Chromebooks

According to sources familiar with the matter, the new device, codenamed J700, is primarily aimed at students, businesses, and casual users whose main computing tasks involve web browsing, document editing, or light media processing. Apple also hopes to attract potential iPad buyers who prefer the traditional laptop experience.

The machine is currently undergoing active testing within Apple and has entered early production stages with overseas suppliers. The sources indicate Apple plans to launch the product in the first half of next year. They requested anonymity because the product has not been officially announced.

Market Challenges and Opportunities

The rising popularity of Chromebooks poses a growing threat to Apple, as these low-cost laptops running Google's Chrome OS steadily gain market share in North America. Furthermore, Microsoft's transition to Windows 11 has disgruntled some older version users who are being forced to forgo security updates, providing an opportunity for Apple to poach Windows users.

Budget MacBook Specifications

Apple intends to keep the new machine's price below $1000 by using less expensive components. The laptop will reportedly feature an iPhone processor and a lower-end LCD screen, with a screen size smaller than any current Mac, likely under the 13.6 inches of 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. However, internal testing suggests that the smartphone chip's performance even surpasses that of the M1 chip that was still used in laptops a few years ago.

Past Strategy and Experiments

Previously, Apple sold discounted versions of the M1 MacBook Air for under $700 through retailers like Walmart to test the low-price market. However, the upcoming product will feature a completely new design, rather than being a discounted version of an older model.

Pricing and Competition

Apple's cheapest current Mac is the M4 MacBook Air, priced at $999, which can be reduced to $899 through educational discounts. In contrast, Chromebooks start at just a few hundred dollars, with even high-end models costing no more than around $600.

In the education sector, Apple's entry-level iPad with the Magic Keyboard Folio is a popular combination, with a total price of around $600. The new Mac will be priced similarly but will offer longer battery life, greater flexibility with macOS, and an integrated keyboard, which may appeal to students and casual consumers.

Apple's Market Position and Growth Prospects

According to IDC data, Apple accounted for approximately 9% of the global personal computer market in the third quarter, ranking fourth behind Lenovo, HP, and Dell – all of which sell devices running Windows or ChromeOS.

If this low-cost Mac can reduce the price while maintaining Apple's design aesthetics and the smooth product ecosystem, it has the potential to ignite a new wave of Mac adoption in markets dominated by the iPhone, such as the United States.

Last quarter, the Mac division was Apple's fastest-growing hardware division, growing 13% to $8.73 billion. Growth is expected to slow this quarter due to the limited number of new products, with only an entry-level MacBook Pro equipped with an M5 chip.

Apple's Future Plans

Looking ahead to 2026, Apple plans to launch several new products. In addition to this low-end laptop, other products include the M5 MacBook Air launched at the beginning of the year, as well as the MacBook Pro equipped with the M5 Pro and M5 Max chips.

The roadmap also includes new M5 and M5 Pro Mac mini, M5 Max and M5 Ultra Mac Studio models. Apple also plans to launch a new MacBook Pro with an M6 chip and an iPhone-like OLED touchscreen at the end of 2026 or the beginning of 2027, as well as two new external displays.