Apple is working on its first low-cost laptop, a strategic departure from its traditional premium approach that could shake up the education and entry-level PC markets, according to a new report. And some responses on social media suggest the PC industry is, indeed, “freaking out” over it.
Apple develops a low-cost laptop to rival Chromebooks and PC laptops
The new Mac, code-named J700, is currently in testing and early production, with the goal of launching in the first half of next year, Bloomberg‘s Mark Gurman reported Tuesday. Apple plans to price it well under $1,000 by using cost-saving components while maintaining the design quality and ecosystem integration Mac users expect.
Delivering an Apple design at a budget price could shake up things in laptop land, as noted by Ben Bajarin, CEO and principal analyst at Creative Strategies. After all, Windows PCs dominate the budget laptop space.
“The share of Windows in MSRP <$800 is 100%,” Bajarin wrote Tuesday on X in response to the Bloomberg report. “This is why the entire PC ecosystem is freaking out over what’s coming from Apple next year.”
A new approach to affordable computing
Apple’s budget laptop will target students, businesses and casual users “primarily browse the web, work on documents or conduct light media editing,” according to Bloomberg‘s anonymous sources. It’s also aimed at iPad customers who might prefer a traditional laptop form factor with an integrated keyboard.
To keep costs down, Apple is making some notable hardware choices. The device will feature an iPhone processor rather than a Mac-specific chip, marking the first time Apple has used a smartphone processor in a Mac. However, internal testing shows this chip can outperform the M1 processor used in recent MacBooks.
The laptop will also use a lower-end LCD display that’s slightly smaller than the 13.6-inch screen on the MacBook Air, making it the smallest display on any current Mac.
Taking on Chromebooks and Windows PCs
The move positions Apple to directly compete with Chromebooks, which dominate the education market at price points as low as a few hundred dollars, and entry-level Windows laptops. Apple currently holds just 9% of the global PC market, ranking fourth behind Lenovo, HP and Dell.
For schools, the new Mac would offer an alternative to Apple’s current entry-level option: an iPad paired with the Magic Keyboard Folio, which costs around $600 combined. The laptop would fall in a similar price range but provide better battery life and the full capabilities of macOS.
Part of a broader Mac refresh
The budget laptop is just one piece of Apple’s extensive Mac roadmap for the coming years. The company has completed work on an M5 MacBook Air for early 2026, along with M5 Pro and M5 Max MacBook Pros. New Mac mini and Mac Studio models are also planned, as well as a redesigned MacBook Pro with an M6 chip and OLED touchscreen for late 2026 or early 2027.
Apple’s Mac business has been performing strongly, growing 13% to $8.73 billion last quarter — the fastest growth rate among the company’s hardware categories.
David Snow, an expert on Apple hardware and software, writes on a variety of technological and cultural topics for Cult of Mac. They include Apple news, technology buying guides, and features about computer setups and Apple TV shows and movies.
With 30 years of experience covering technology and other subjects, he has written and edited for numerous print and online publications, including CMP Media, TechTV.com, CNET, Wired News, Red Herring magazine, Law.com, The National Law Journal and Law Technology News magazine. Among other roles, he served as executive editor of the Law.com network of websites and editorial director, technology, for ALM Media.
Snow graduated with a B.A. from Syracuse University with majors in magazine journalism and psychology. While there, he worked as a reporter for The Daily Orange newspaper and associate editor of Equal Time magazine.
Founder of the blog At the Waterline, he can be reached on X (formerly Twitter) via @atthewaterline and on Mastodon via @dsnow.
