Apple Prepares First Budget MacBook to Counter Chromebooks

Apple is making a major, long-awaited strategic U-turn. For the first time in its history, the company is preparing to enter the highly competitive, low-cost laptop market. Apple is working on a brand new, budget-focused Macbook, shifting from its long-standing tradition of only chasing premium, high-margin hardware.

This isn’t the first time we’ve heard about an upcoming affordable Mac device. However, a recent report from Bloomberg’s Mark Gumber has revealed more key details.

Apple to launch budget MacBook laptop

Codenamed J700, Apple’s affordable portable Mac is currently deep in testing and expected to launch in the first half of next year (2026). The firm designed this laptop to directly lure away customers who might otherwise purchase a Google Chromebook or an entry-level Windows PC. Its target audience is broad: students and casual users who primarily browse the web and work on documents. It even could aim at potential iPad buyers who prefer the traditional keyboard-and-trackpad experience of macOS.

To achieve a price point well under the current $999 baseline for the MacBook Air, Apple made some clever engineering compromises. The laptop will feature a smaller, lower-end LCD display. We are talking about a panel slightly under the 13.6-inch screen on the current MacBook Air.

Powered by an iPhone processor

The most notable compromise is the processor. This budget machine will be the first Mac to rely on an iPhone processor instead of a chip custom-designed for the Mac lineup. While this might sound like a major downgrade, internal testing suggests the smartphone chip performs surprisingly well. It reportedly exceeded the performance of the Mac-optimized M1 chip used in laptops just a few years ago. By using a chip already manufactured in massive volume for the iPhone, Apple dramatically reduces production costs for the new budget-friendly Mac.

This strategic move comes as a response to market reality. Chromebooks are dominating in the education sector. Plus, the transition to Windows 11 has created an opening among PC users seeking a stable alternative. Furthermore, the budget Mac is positioned to undercut Apple’s own iPad and keyboard folio combo (which totals around $600). The device will offer better battery life and the full flexibility of the macOS software for a similar price.

Price hint

Regarding pricing, specific details are still unavailable, but there are clues. However, the report states that the Mac budget will cost “well under $1,000.” For reference, Apple’s cheapest Mac is the M4 MacBook Air (starting at $999). The company also conducted a “pricing experiment” by offering a discounted M1 MacBook Air for under $700.

The “affordable” Mac should still retain Apple’s signature design and tight ecosystem integration. So, it could get a massive wave of adoption from the beginning. This is especially true in the US market, where the iPhone already reigns supreme. This new budget laptop represents a new chapter for Apple, prioritizing market share and broad access over its traditional focus on exclusivity.