Apple announces its cheapest-ever new MacBook

New York (CNN) — Apple on Wednesday launched the MacBook Neo, the company’s cheapest-ever new model.

The MacBook Neo is the first Apple laptop to run on a chip typically used in the iPhone and starts at $599. It signals a fresh attempt to court Windows and Chromebook customers and ramp up growth as an ongoing component shortages rattles the broader market.

John Ternus, Apple’s senior vice president of hardware engineering, described the MacBook Neo as being “totally new” and built “from the ground up” during an event in New York on Wednesday.

The iPhone is Apple’s biggest moneymaker, followed by its services business and then its wearables division. But its Mac computers are critical for ensuring iPhone and Apple Watch users remain steeped within Apple’s ecosystem of products and services. Apple is straying from its typical playbook by appealing to cost-conscious consumers, a segment it has largely ceded to PC and Chromebook makers until now.

Expanding to new audiences could be critical as the industry grapples with an ongoing memory shortage that some analysts say will decimate the market for affordable laptops.

The MacBook Neo

Compared to Apple’s other MacBooks, the Neo has a smaller screen, less memory and is available in brighter color options, including a new “citrus” yellow.

But the major factor that separates it from Apple’s other MacBooks, aside from its lower price, is that it runs on Apple’s A18 Pro processor – a chip similar to the one that powers the iPhone 16 Pro. It’s the first time Apple has used one of its mobile chips to power a laptop.

Apple’s ability to run its Mac software on a phone chip demonstrates the advantage of having full control over its hardware and software, said Jitesh Ubrani, a research manager for the International Data Corporation. PC makers, on the other hand, typically design and make the laptops but use Microsoft’s Windows or Google’s Chrome OS software (Microsoft is a small player in the PC hardware business with its Surface laptops).

“They’re taking a chip that typically serves a lightweight (operating system) and running a more heavy weight (operating system),” he said. “And I think that speaks volumes about Apple’s ability to optimize.”

Apple is far from being the world’s biggest computer vendor; that title goes to Lenovo, which accounted for 27.2% of the market at the end of 2025 compared to Apple’s 9.4%, Gartner data indicates.

But Apple’s approach to the market has also been decidedly different from its PC rivals. MacBooks, until now, have largely been more expensive and lack a touchscreen option like most PCs.

The new MacBook Neo is an attempt to address at least one of those gaps. Although 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 said he expects the new MacBook to be popular among college students and young adults that may not have as much disposable income, while Gartner analyst Autumn Stanish says it could boost Apple’s presence in the classroom where Chromebooks are typically more prominent.

A tough time for the laptop industry

Growing demand for the type of memory that powers AI data centers has meant there’s fewer components for consumer products.

Gartner expects PC prices to increase by 17% in 2026, while the International Data Corporation estimates PC sales will decline by 11.3% this year.

Launching a cheap new MacBook now before those price hikes kick in could give Apple an advantage. While the whole market is expected to shrink, Apple won’t as steep declines because it’s expected to gain some market share, according to Ubrani.

“That share gain is primarily because of this device,” he said.

Apple also introduced new MacBook Air and MacBook Pro computers this week, in addition to new laptop chips. The MacBook Neo launches on March 11.

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