Apple Plans Budget Mac to Compete with Chromebooks

New low-cost laptop expected in first half of next year.

Apple is preparing to enter the budget laptop market with a new Mac model aimed at students, small businesses, and casual users. According to Bloomberg News, the device—code-named J700—is scheduled for release in the first half of next year and will be priced well below $1,000. The move marks Apple’s first attempt to compete directly with entry-level Windows PCs and Google’s Chromebooks. By using less-advanced components, the company aims to offer a more affordable alternative to its current Mac lineup.

Target Audience and Design Strategy

The upcoming laptop is designed for users who primarily browse the web, work on documents, or perform light media editing. Apple also hopes to attract potential iPad buyers who may prefer a traditional clamshell form factor. The device is currently undergoing internal testing and early production with overseas suppliers. No official comment has been provided by Apple regarding the report.

At present, the most affordable Mac is the M4 MacBook Air, which retails for $999 and drops to $899 with a student discount. The new model will feature a lower-end LCD display and a screen size slightly smaller than 13.6 inches, making it the most compact Mac in the current lineup. Notably, Apple plans to use an iPhone processor in the laptop, a first for the company. Internal benchmarks suggest that the chip performs better than the Mac-specific M1 processor used in recent years.

Market Position and Performance

Apple’s decision to enter the budget segment comes amid strong Mac sales, which reached $8.73 billion in the fourth quarter—exceeding analyst expectations of $8.59 billion. The company also projected robust holiday-quarter iPhone sales and overall revenue, signaling confidence in its broader product strategy. By introducing a lower-cost Mac, Apple may be looking to expand its user base and strengthen its position in education and entry-level markets. The new device could also serve as a gateway for users to explore Apple’s ecosystem without the premium price tag.

The J700 model is expected to appeal to cost-conscious consumers who value Apple’s design and software integration but do not require high-end performance. Its use of a smartphone chip reflects a shift in Apple’s approach to hardware optimization, potentially lowering production costs while maintaining adequate functionality. Analysts will be watching closely to see how the market responds to this new offering. If successful, the budget Mac could reshape Apple’s laptop strategy in the years ahead.