APPLE PLANS LOW-COST MAC FOR STUDENTS AND CASUAL USERS

Apple

Summary:

• Apple develops budget Mac priced at $600 to attract students and casual users away from Chromebooks and Windows PCs
• Device uses iPhone processor and LCD display to reduce manufacturing costs
• Testing shows iPhone chip performs better than recent M1 processor in early trials

Apple plans to release a budget Mac priced at approximately $600, according to sources familiar with the matter who spoke to Bloomberg. The device, internally labeled J700, targets a market segment the company has largely ignored: price-conscious consumers who consider Chromebooks and entry-level Windows computers.

The new computer aims to serve students, businesses, and casual users who need a device for web browsing, document creation, and light media editing. Apple also wants to capture consumers who consider the iPad but prefer a traditional laptop form factor. The screen measures slightly smaller than the MacBook Air's 13.6-inch display.

Apple achieves the lower price point through specific hardware choices. The device uses an LCD display instead of the more expensive screen technology found in current Mac models. More significantly, the computer runs on an iPhone processor rather than the M-series chips found in other Macs.

Early testing results indicate the iPhone processor performs better than the M1 chip in certain scenarios, according to Bloomberg's sources. The switch to mobile architecture brings additional benefits. Users gain improved battery life compared to traditional laptop processors. The device still runs macOS, giving buyers access to Apple's desktop operating system and the full keyboard experience that iPad users miss.

The $600 price point matches the combined cost of an entry-level iPad and Magic Keyboard Folio. This pricing strategy directly challenges the iPad as a laptop replacement while undercutting Apple's current Mac lineup. The least expensive Mac currently sells for $999, leaving a substantial gap in Apple's product range.

The company aims to compete in education and budget computing markets where Chromebooks dominate. Chromebooks gained significant market share in schools during the past decade, offering low prices and simple management for IT administrators. Windows PC manufacturers also produce numerous models under $600, a segment where Apple has no presence.

Apple currently tests the J700 at its facilities. The company has moved into early production with overseas suppliers. The manufacturing timeline suggests a potential launch in the first half of 2026, though release dates for products in development often shift.

The budget Mac represents a departure from Apple's recent strategy of premium pricing across all product categories. The company has steadily increased prices on iPhones, iPads, and Macs over the past several years. A sub-$600 Mac would mark Apple's first attempt at a truly affordable computer since the M1 MacBook Air launched at $999.

Industry observers note the risks in this approach. Apple built its brand on premium products with high profit margins. A budget Mac succeeds only if the company maintains quality standards while hitting the target price. The device must feel like an Apple product despite costing hundreds less than other Macs.

Apple declined to provide comment on the reports.

The budget Mac joins other rumored Apple projects in development. The company continues work on augmented reality devices, new iPads, and updates to existing Mac and iPhone lines. Whether J700 reaches consumers depends on whether Apple solves the