While the tech giant dominates the smartphone and tablet market, its upcoming affordable laptop could trigger widespread Mac adoption across the US.
Apple is venturing into budget computing territory for the first time, promising to create an affordable Mac designed to compete with Chromebooks and entry-level Windows PCs.
Targeted at students, businesses and everyday users, the code-named J700 device will cater to people who mainly browse online, handle documents, or do basic media work, according to sources close to the project.
Similarly, the Silicon Valley company hopes to target iPad customers who'd prefer a conventional laptop setup.
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The machine is currently undergoing active testing at Apple and has entered early production with international suppliers.
The iPhone and iPad manufacturer hopes to launch the J700 in the first half of next year, sources said as per Bloomberg, who requested anonymity because the product remains unannounced.
This machine marks Apple's step into the budget market, as it typically focuses on premium products with substantial profit margins.
However, Apple faces mounting competition from Google Chromebooks as well as the opportunity to attract Windows users.
Recently, Microsoft's Windows 11 update and discontinuation of Windows 10 support have frustrated many users with glitches and bugs, leading them to seek alternatives.
Apple will price the new laptop well below $1,000 by incorporating less sophisticated components.
The machine will use an iPhone processor and a more basic LCD screen, while the display will be the smallest of any current Mac, measuring slightly under 13.6 inches, the same as the MacBook Air. Internal testing demonstrated that the smartphone chip outperforms the Mac-specific M1 used in laptops just a few years back.
While Apple has historically used iPhone chips in iPads, it switched higher-end models to its M-series processors several years ago.
Apple's most affordable Mac is the $999 M4 MacBook Air, which drops to $899 with student discounts. By comparison, Chromebooks start at just a few hundred dollars, with premium versions reaching around $600.
Mac sales already led Apple's hardware growth last quarter, jumping 13% to reach $8.73 billion. Growth is expected to ease this quarter though, largely due to Apple releasing only one new model - the standard MacBook Pro equipped with an M5 chip.
Apple is lining up multiple product launches for 2026. Beyond the entry-level laptop, the company has completed an M5 MacBook Air scheduled for early next year, along with MacBook Pros running M5 Pro and M5 Max processors.