According to Techmeme, Apple is testing a new low-cost Mac priced under $1,000 that uses iPhone-class chips instead of M-series processors. The device reportedly still outperforms early M1 Macs while expanding Apple’s entry-level Mac lineup without hurting Air and Pro average selling prices. Analyst Austin Lyons suggests this could be the long-rumored everyday low-priced MacBook that Apple has historically resisted. The development comes as Apple has pulled out of automotive projects, slow-rolled its XR headset, and avoided entering smart-home and wearable ring categories.
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Why now?
This feels like Apple finally admitting they need to compete in the budget space. For years, they’ve watched Chromebooks and cheap Windows laptops eat their lunch in education and entry-level markets. And honestly, their product lineup has gotten pretty top-heavy with everything moving toward premium pricing.
Here’s the thing: Apple’s been sitting on this incredible silicon advantage for years. The fact that they can now take iPhone-class chips – which are ridiculously powerful in their own right – and stick them in a Mac that still beats their own M1 from just a few years ago? That’s insane efficiency. They’re basically recycling their mobile tech into a new product category without significant R&D costs.
The technical trade-offs
Using iPhone chips instead of M-series processors is a brilliant cost-cutting move. These chips are already being produced at massive scale for iPhones, so the marginal cost of sticking them in Macs is relatively low. But there are compromises.
The thermal design will be different – iPhone chips are designed for burst performance in tight spaces, not sustained laptop workloads. And I wonder about memory and storage configurations. Will we see 8GB RAM becoming the new base standard? Probably. The performance might beat early M1, but it won’t touch the M3 or upcoming M4 chips.
Still, for most people doing web browsing, document editing, and video calls? This thing will feel lightning fast. The real question is whether Apple will cheap out on the display, keyboard, and trackpad – the things that actually make MacBooks feel premium.
What this means for the market
If Apple actually releases a sub-$1,000 MacBook that doesn’t feel like a compromise, it could seriously disrupt the entire laptop market. Think about it – you’d get MacOS, Apple’s build quality, and performance that stomps most Windows laptops in that price range.
But I’m skeptical about how “cheap” Apple will actually go. Remember when the iPhone SE was supposed to be affordable? They’ll probably position this at $999 and call it a value. Still, that’s hundreds less than current entry-level MacBooks.
The timing makes sense too. As Austin Lyons noted, Apple’s running out of big growth drivers. The car’s dead, Vision Pro is niche, and they need something to move the needle. A cheap Mac could be that thing.
The developer angle
Interestingly, this news broke alongside Google’s proposed settlement with Epic that includes reduced app store fees globally. There’s a pattern here – platform companies are finally feeling pressure to become more accessible.
For developers, a cheaper Mac means more potential users who can afford Apple’s ecosystem. That’s huge for software sales and services revenue. And as Ben Bajarin and others have discussed, expanding the user base matters more than ever in a saturated smartphone market.
Basically, Apple’s realizing they can’t just keep raising prices forever. Sometimes you need to go after the volume play. And with their chip advantage, they’re uniquely positioned to do it without sacrificing too much margin.
