Apple to launch sub‑$1,000 MacBook to capture entry‑level PC buyers
What's the story
Apple is gearing up to launch its first-ever budget Macbook, targeting students, businesses, and casual users. The move marks a major shift for the tech giant, which has so far focused on premium devices with high profit margins. The new machine, codenamed J700, is currently being tested at Apple's facilities and early production has begun with overseas suppliers.
Market strategy
Targeting Chromebook and entry-level Windows PC users
The upcoming budget Mac is aimed at luring customers from Chromebooks and entry-level Windows PCs. It will cater to users who mainly browse the web, work on documents, or do light media editing. Apple is also eyeing potential iPad buyers who may prefer a traditional laptop experience instead of a tablet.
Specs
To use iPhone processor instead of computer-specific chip
Apple plans to price the new machine well under $1,000 by using less-advanced components. The laptop will be powered by an iPhone processor and feature a lower-end LCD display. The screen will be smaller than the 13.6-inch one on the MacBook Air, making it Apple's smallest Mac display yet. This would be the first time Apple is using an iPhone processor in a Mac instead of a computer-specific chip.
Market impact
Potential to boost Apple's PC market share
Apple's entry into the low-cost laptop segment could be a game-changer for its global PC market share. Currently, Apple holds about 9% of the global PC market and ranks fourth in the industry after Lenovo, HP, and Dell. A cheaper Mac that retains Apple's design and works seamlessly with its other products could trigger a new wave of Mac adoption, especially in the US where iPhone dominates.