The MacBook Neo Is Here to Disrupt the Personal Computing Market

On Wednesday, Apple unveiled its “low-cost” laptop, the MacBook Neo. To achieve its attractive price, the machine takes a few shortcuts: it uses an iPhone chip rather than a Mac chip; it only has 8 GB of RAM; the keyboard does not have backlight; the base model does not come with Touch ID. But none of that really matters when Apple is offering you a brand new MacBook for just $599, or $499 if you buy through the Education Store. (Since the company doesn’t actually require proof that you’re a student or teacher to purchase from the Education Store, the Neo is, in effect, a $500 MacBook. Wild.)

If I were any other IT company, I’d be nervous right now. Apple is of course already a giant player in the IT field, but it is not the biggest. In fact, it’s really fourth, behind Dell in third place, then HP and Lenovo, at least in terms of global computer shipments. It currently beats other major manufacturers, including Asus and Acer, despite its range starting at $999. (Which jumped to $1,099 with the launch of the MacBook Air M5.) There are often sales on MacBooks, especially older models like the MacBook Air M1 and M2, but the machines remain undeniably expensive — and yet Apple still has no trouble selling a lot of them. How will this change now that customers no longer need to wait for a sale or turn to the second-hand market to find good deals on MacBooks? How will sales adjust when shoppers can walk into an Apple Store and leave with a basic MacBook that costs half as much?

The MacBook Neo could sell very GOOD

Anything is possible, and no one can predict the future with complete accuracy, but I think Apple has just lit a fuse that will massively shake up the computing market, particularly in three key areas: personal computing, education, and enterprise.

Let’s start with this first point: if you’re in the market for a new laptop, you certainly have no shortage of options. You can opt for a PC, which can often be found much cheaper than comparable Macs, but Microsoft’s current strategy is strange: It has attempted to bring the entire PC market under its umbrella of AI features, slapping many computers with its “Copilot+ PC” branding, including a dedicated Copilot key. The problem is that few users seem to really care about these AI features, and while many machines are well-designed, they are bogged down by Microsoft’s AI. Honestly, it’s a bit of a mess. You might be prepared to deal with this mess if you’re a Windows fan or can’t afford a Mac.

Then there’s the current state of Chromebooks: Google’s Chrome OS devices are often very affordable, giving users access to essential tools for work and play. And yet the overall experience tends to leave something to be desired, especially if you’re used to a traditional Mac or PC, or if you need programs that only run on one of those machines.

That leaves the Mac, which can often be deprioritized due to its higher costs. If you’re just looking for something to use for browsing the web and answering emails, why spend $999 or more on a Mac when you could spend a fraction of the cost on a PC or Chromebook? But if the Macbook is now a fraction of the cost Apple previously charged, which literally changes the equation. As for AI, although Apple offers AI features, they are 100% optional and, in my opinion, more of an afterthought than the main component that Microsoft seems to want them to be. I imagine a number of new customers will gravitate towards this option, particularly students looking for an affordable way to do their homework.

How the MacBook Neo Could Affect Education and Business

Then there’s the broader education market, which Apple once dominated. Now the domain largely belongs to the Chromebook, and for good reason: these devices are cheapand they are designed to work with Google services. If your school already uses Google, Chromebooks are a no-brainer: 93% of U.S. school districts planned to purchase Chromebooks last year, and about 60% of Chromebooks are used in education. I don’t think the MacBook Neo will reverse the trend (the Chromebook is too buried), but it could erode Google’s dominance. Any school wanting to consider something a little more robust than a Chromebook may find that $500 price tag easier to swallow than $999.

It’s a similar story for businesses: If you’re a company looking to buy laptops for your employees and you’re not limited to a particular operating system, the MacBook Neo is suddenly a great option. If your employees can run macOS or access business suites like Google or Microsoft through macOS, these low-cost MacBooks are great value. Companies are already buying MacBook Airs and MacBook Pros, which cost double or triple the price of the Neo. Perhaps anyone looking to upgrade their hardware will find this price tempting.

Maybe the MacBook Neo will be a modest success for Apple, or maybe people will buy Macs whether they cost $499 or $1,099. But I think Apple has solved something important here. Time will tell, but I think we’ll see a plot of these colorful machines in cafes, schools and workplaces – and perhaps fewer Chromebooks and budget computers as a result.