CNN —
Apple launched the MacBook Neo, the company’s most affordable laptop, on Wednesday.
The MacBook Neo is Apple’s first laptop to run on a chip typically used in the iPhone, and it has a starting price of $599. This move represents a fresh effort to attract customers currently using Windows and Chromebooks and drive growth, particularly as component shortages continue to impact the broader market.
During an event in New York City on Wednesday, Apple’s Senior Vice President of Hardware Engineering, John Ternus, described the MacBook Neo as “completely new” and said it was built “from the ground up.”
The iPhone remains Apple’s largest revenue source, followed by its services business and wearables division. However, Mac computers are crucial for keeping iPhone and Apple Watch users integrated into Apple’s ecosystem of products and services. Apple is deviating from its usual strategy by targeting price-conscious consumers, a segment it has largely ceded to PC and Chromebook manufacturers.
Expanding into new audiences could prove critical as the industry faces a persistent memory shortage that some analysts predict will decimate the affordable laptop market.
Compared to other MacBooks, the Neo features a smaller screen, less storage, and is available in brighter colors, including a new “citrus” yellow.
However, the key differentiator from other MacBooks, aside from its lower price, is that it runs on Apple’s A18 Pro processor – a chip similar to the one found in the iPhone 17 Pro. This marks the first time Apple has used one of its mobile chips in a laptop. This integration highlights Apple’s unique ability to leverage its chip design across multiple product categories.
Apple’s ability to run its Mac software on a phone chip demonstrates the advantage of having complete control over its hardware and software, according to Jitesh Ubrani, Research Director at International Data Corporation. PC manufacturers, typically design and build their laptops but rely on Microsoft’s Windows operating system or Google’s Chrome OS.
“They’re taking a chip that normally runs a lightweight operating system and running a heavier one,” Ubrani said. “And I reckon that says a lot about Apple’s ability to optimize.”
Apple is far from the largest computer provider globally. That title currently belongs to Lenovo, which held 27.2% of the market at the end of 2025, compared to Apple’s 9.4%, according to data from Gartner.
However, Apple’s approach to the market has also been distinctly different from its competitors in the PC space. Until now, MacBooks have generally been more expensive and lacked a touchscreen option like most PCs.
The MacBook Neo is an attempt to address at least one of those shortcomings. While it doesn’t have a touchscreen, it could appeal to consumers who don’t want to spend more than $1,000 on a MacBook Air or Pro, but need something more laptop-like than an iPad.
Ubrani expects the new MacBook to be popular among college students and young adults with fewer resources available, while Gartner analyst Autumn Stanish believes it could boost Apple’s presence in classrooms, where Chromebooks are typically more popular.
Growing demand for the type of memory that powers AI data centers has resulted in fewer components available for consumer products.
Gartner forecasts PC prices will increase by 17% in 2026, while International Data Corporation estimates PC sales will decline by 11.3% this year.
Launching a new, more affordable MacBook now, before those price increases take effect, could provide Apple an advantage. While the overall market is expected to shrink, Apple is not expected to experience steep declines given that it is projected to gain market share, according to Ubrani. “That share gain is largely attributable to this device,” he said.
Apple also unveiled new MacBook Air and MacBook Pro models this week, along with new chips for laptops. The MacBook Neo will be available on March 11.
