On Wednesday, Apple unveiled the MacBook Neo, which marks the company’s most budget-friendly new model ever released.
The MacBook Neo is Apple’s inaugural laptop powered by a chip typically reserved for iPhones, priced at just $599. This launch signals a renewed effort to draw in Windows and Chromebook users and spur growth, especially as ongoing component shortages impact the broader market.
John Ternus, Apple’s senior vice president of hardware engineering, described the MacBook Neo as “entirely new” and constructed “from the ground up” during an event held in New York on Wednesday.
The iPhone is Apple’s leading revenue generator, closely followed by its services division, and then the wearables segment. However, the Mac computers remain crucial for keeping iPhone and Apple Watch owners engaged within the company’s ecosystem of products and services. Apple is deviating from its established approach now by aiming for budget-conscious consumers—a segment largely ceded to PC and Chromebook manufacturers until now.
Expanding into new user bases could prove vital amidst the persistent memory crunch, which some analysts predict will disrupt the affordable laptop market.
The MacBook Neo
When contrasted with Apple’s other MacBook offerings, the Neo features a smaller display, reduced memory capacity, and comes in more vibrant exterior finishes, including a novel “citrus yellow.”
But the key differentiator, beyond the lower cost compared to other Apple MacBooks, is its operation on the Apple A18 Pro processor—a silicon akin to what powers the iPhone 16 Pro. This is the first instance where Apple utilizes one of its mobile processors to drive a laptop.
Apple’s capability to execute its Mac operating system software on a mobile phone chip highlights the tangible benefit of complete control over both hardware and software, noted Jitesh Ubrani, a research manager at the International Data Corporation. PC makers, conversely, generally design and build their laptops but rely on Microsoft Windows or Google Chrome OS (with Microsoft being a minor player in PC hardware via Surface laptops).
“They are taking a chip designed typically for a lighter OS and using it for a heavier OS,” he remarked. “And I think that speaks volumes about Apple’s optimization finesse.”
Apple is by no means the world’s largest computer supplier; that designation belongs to Lenovo, which held 27.2% of the market by the close of 2025, compared to Apple’s 9.4%, according to Gartner.
Yet, Apple’s market strategy also noticeably differs from its PC rivals. Historically, MacBooks have generally carried higher price tags and lack touchscreens, unlike most PCs.
The new MacBook Neo attempts to bridge at least one of these gaps. While it lacks a touchscreen, it may appeal to consumers who wish to avoid spending over $1,000 on a MacBook Air or Pro but desire something more akin to a traditional laptop than an iPad.
Ubrani projects the new MacBook will find favor with university students and younger adults who may have less disposable income, while Gartner analyst Autumn Stanish suggests it could boost Apple’s presence in demographics where Chromebooks typically dominate.
A Challenging Time for the Laptop Industry
Soaring demand for the specific type of memory powering AI data centers has led to a reduction in available components for consumer products.
Gartner forecasts PC prices will increase by 17% in 2026, and International Data Corporation estimates PC shipments will decline by 11.3% this year.
Launching an inexpensive new MacBook now, just before prices are set to rise, could provide Apple with an advantage. Although the overall market is expected to contract, Apple is not anticipated to face as steep a decline, given expectations that its market share will grow, according to Ubrani.
“The share growth is largely driven by this device,” he stated.
Apple also introduced updated MacBook Air and MacBook Pro models this week, alongside new laptop chips. The MacBook Neo is slated to become available on March 11th.
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