According to TechPowerUp, Apple is developing a new budget MacBook priced well below $1,000 for launch in the first half of 2026. Code-named J700, the device will use an iPhone-class processor rather than a Mac-specific chip and feature a smaller LCD display slightly under 13.6 inches. Early testing reportedly shows this smartphone processor outperforming Apple’s first-generation M1 chip. The laptop targets students, businesses, and general consumers with less advanced components to keep costs down. This comes after Apple just announced record quarterly revenue of $102.5 billion and launched its new M5 processor with 45% faster graphics than the M4.
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<h2 id="budget–macbook-implications”>Why This Changes Everything
Here’s the thing: Apple has never seriously competed in the budget laptop space. They’ve always been the premium option while Chromebooks and cheap Windows machines dominated the under-$700 market. But now they’re coming for that territory, and it’s a huge strategic shift.
Think about it – an iPhone processor in a MacBook? That’s wild. But it makes perfect sense when you consider Apple’s chip expertise. Their smartphone chips have been outperforming some laptop processors for years. Basically, they’re leveraging their mobile silicon dominance to create a new product category that could seriously disrupt the entry-level market.
Who Actually Buys This?
This isn’t for power users or creative professionals. It’s for the millions of people who just need a reliable laptop for web browsing, documents, and light media editing. You know, the same people who might otherwise buy an iPad with a keyboard case.
And that’s the real play here. Apple is probably looking at all those potential iPad customers who still want a traditional laptop form factor. Why let them go to Chromebooks when you can offer them a “real” Mac at a competitive price? It’s smart business, especially when you’re sitting on $102.5 billion in quarterly revenue and can afford to experiment.
The Chromebook Challenge
Chromebooks have owned the education and budget markets for years. But an Apple product at a similar price point? That could change everything. Schools and businesses that wanted Macs but couldn’t justify the cost might suddenly have a viable option.
The timing is interesting too. With the M5 just launching and Apple pushing the high-end envelope, they’re simultaneously reaching downmarket. It’s a classic “cover all bases” move that could significantly expand their user base. Will it work? We’ll find out in 2026, but the fact that production is already underway suggests they’re serious about this.
