Apple is preparing to enter the budget laptop market for the first time with a lower-cost Mac expected to launch in the first half of next year, Bloomberg News reported Tuesday.
The device, code-named J700, is designed to attract students, businesses and everyday consumers who primarily browse the web, handle basic work tasks or perform light media editing, according to the report. Apple is also targeting potential iPad buyers who may prefer a traditional laptop.
The laptop would mark the first time Apple uses an iPhone processor in a Mac rather than a chip specifically developed for computers, Bloomberg reported. Internal testing reportedly shows the smartphone chip outperforming the Mac-optimized M1 processor used in recent entry-level models.
The new model will feature a lower-end LCD display slightly smaller than 13.6 inches — currently the smallest screen size in Apple’s Mac lineup — and is already in active testing at Apple and early production stages with overseas suppliers, the report said.
Apple’s least-expensive Mac right now is the M4 MacBook Air, which starts at $999, or $899 with a student discount.
A budget Mac would position Apple to compete more directly with Google’s Chromebooks and entry-level Windows laptops, which dominate the education and low-cost PC market.
Apple reported $8.73 billion in Mac revenue in the fourth quarter, beating analyst expectations of $8.59 billion. The company last month also issued holiday-quarter guidance that topped Wall Street estimates.