The MacBook Neo Is Here to Disrupt the Personal Computing Market

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The MacBook Neo Is Here to Disrupt the Personal Computing Market

On Wednesday, Apple unveiled its long-rumored "low-cost" laptop, the MacBook Neo. To get to its attractive price point, the machine cuts some corners—it runs an iPhone chip, rather than a Mac chip; it only has 8GB of RAM; the keyboard lacks a backlight; the base model doesn't 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. (Given the company doesn't actually require proof that you're a student or teacher to shop the Education Store, the Neo, is, effectively, a $500 MacBook. Wild.)

If I were any other computer company, I'd be nervous right now. Apple is, of course, a giant player in the computing space already, but it isn't the largest. In fact, it's really in fourth, behind Dell in third, then HP and Lenovo, at least in terms of global computer shipments. It currently beats out other major manufacturers, including Asus and Acer, despite its lineup starting at $999. (Which jumped to $1,099 with the launch of the M5 MacBook Air.) There are often sales on MacBooks, especially older models like the M1 and M2 MacBook Airs, but the machines remains undeniably pricey—and yet Apple still has no trouble selling a lot of them. How will that change now that customers don't need to wait for a sale or look to the secondhand market for find great deals on MacBooks? How will sales adjust when buyers can walk into an Apple Store, and walk out with a base MacBook that costs half as much?

The MacBook Neo could sell very well

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

Let's start with that first point: If you're in the market for a new laptop, you certainly have no shortage of options. You could go with a PC, which can often be found much cheaper than comparable Macs, but Microsoft's current strategy is weird: It has tried to tie the entire PC market together under its umbrella of AI features, affixing many computers with its "Copilot+ PC" branding, including a dedicated Copilot key. The problem is, few users really seem to care for these AI features, and despite many of the machines being well-designed, they are bogged down with Microsoft's AI bloat. Frankly, it's a bit of a mess. You might be willing to deal with that 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 super affordable, giving users access to essential tools for work and leisure. And yet, the overall experience tends to leave something to be desired, especially if you're used to a traditional Mac or PC, or require programs that only run on one of those machines.

That leaves the Mac, which can often get deprioritized due to its higher costs. If you're just looking for something to use to browse the web and answer 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 used to demand for it, that quite literally changes the equation. As for AI, while Apple offers AI features, they're 100% optional, and, in my view, more of an afterthought that the core component Microsoft seems to want them to be. I can imagine a number of new customers jumping for this option—especially students looking for an affordable way to get their classwork done.

How the MacBook Neo could affect education and enterprise

Then, there's the larger education market, which Apple once dominated. Now, the area largely belongs to the Chromebook, and for good reason: Those devices are cheap, and they're built to work with Google services. If your school already runs on Google, Chromebooks are a no-brainer: 93% of U.S. school districts planned to buy Chromebooks last year, and roughly 60% of Chromebooks are used in education settings. I don't think the MacBook Neo is going to flip the script there—the Chromebook is too dug in—but it could chip away at Google's dominance. Any school that might want to consider something a bit more robust than a Chromebook may find that $500 price easier to swallow than $999.

It's a similar story for enterprise: If you're a company looking to buy laptops for your employees, and you aren't stuck to one particular OS, the MacBook Neo is suddenly a great option. If your employees can run macOS—or access work suites like Google or Microsoft through macOS—these low-cost MacBooks are a great value. Companies already buy MacBook Airs and MacBook Pros, which are double or triple the Neo's price. Perhaps any looking to refresh their hardware may find that 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 cracked something major here. Time will tell, but I think we'll be seeing a lot of these colorful machines in coffee shops, schools, and workplaces—and perhaps fewer Chromebooks and budget PCs as a result.

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