Apple Reportedly Developing Its First Budget Mac to Rival Chromebooks

Apple is set to make an unprecedented move into the budget laptop market, with reports indicating the company is working on a low-cost Mac designed to compete with Chromebooks and entry-level Windows notebooks. The project marks a notable strategic shift for a company traditionally focused on premium devices.

A New Category for Apple

Codenamed J700, the upcoming laptop is reportedly aimed at students, business users, and general consumers whose daily tasks involve document editing, web browsing, and light media work. Apple also appears to be targeting iPad owners who prefer the functionality and comfort of a classic clamshell laptop.

According to sources, the device is already undergoing active testing, with early production taking place in overseas facilities. A launch is expected in the first half of 2026, though Apple has so far declined to comment publicly on the project.

What to Expect From the Budget Mac

The new model is expected to cost under $1,000, made possible by using more affordable hardware. Unlike traditional MacBooks, it will reportedly feature an iPhone-class processor rather than a Mac-specific chip, along with a smaller LCD display than the 13.6-inch panel found on the MacBook Air.

If accurate, this would be the first Mac ever to use a smartphone processor. Despite that, early testing suggests the chip actually outperforms the older M1 Mac processor, giving the laptop solid performance for its category.

Pricing Strategy and Market Impact

This marks a significant pivot toward affordability for Apple, which has long dominated the high-end laptop segment. Following the reports, HP and Dell shares dropped by about 2%, while Apple’s stock rose nearly 1% to $270.25 per share, signaling investor confidence in the move.

Apple previously experimented with lower pricing by offering the M1 MacBook Air at Walmart for under $700, but the upcoming device is said to be a completely new design. It’s expected to deliver better battery life, the macOS experience, and a built-in keyboard, all within a price range comparable to a base iPad with a keyboard — roughly $600.

Currently, the most affordable Mac is the MacBook Air with the M4 chip, which retails for $999, or $899 for students and educators through the Apple Education program.

With the budget Mac, Apple seems ready to challenge the dominance of Chromebooks in schools and entry-level markets — a move that could reshape its hardware lineup and expand its reach to millions of new users.