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Apple (AAPL) is breaking with decades of tradition by preparing to launch its first budget MacBook in the first half of 2026, according to a report by news platform Bloomberg on Tuesday.

Codenamed J700, this game-changing device is expected to cost well under $1,000, marking Apple’s boldest push into affordable computing since the original iPad.

For years, Apple has maintained a premium-only strategy, with even its cheapest Mac, the M4 MacBook Air, priced at $999.

But the company is now ready to challenge Chromebooks and entry-level Windows laptops that dominate the education and budget-conscious markets.

Powered by an iPhone processor and equipped with an LCD display, this new MacBook will use less-advanced components to hit an aggressive price point.

Industry insiders see this as a pivotal moment that could reshape the entire laptop market, forcing competitors to rethink their own strategies.

Apple’s secret weapon: iPhone chips in a Mac

Apple is about to do something it has never done before.

For the first time, a MacBook, specifically a new budget-friendly one is expected to run on the same kind of A-series chip used in iPhones, rather than a chip designed specifically for Macs.

That’s a pretty huge shift, because it basically flips the traditional idea of what counts as “computer-grade” silicon.

And here’s the twist: according to Bloomberg, Apple’s internal tests show that this iPhone-style chip can actually outperform the original M1, the same chip that powered MacBooks just a few years ago.

If that holds true, it’s a big flex from Apple, proving just how far mobile chip design has come.

Design-wise, this new MacBook is shaping up to be Apple’s smallest yet, with a screen somewhere just under 13.6 inches, possibly around 12.9 inches.

To keep the price down, it won’t use the premium Retina displays found on the MacBook Air and Pro. Instead, it’ll go with a more basic LCD panel.

And here’s something fun: analyst Ming-Chi Kuo says Apple might bring bright, playful color options: think silver, blue, pink, maybe even yellow, similar to the colorful iMacs.

That’s a big departure from the usual minimalist silver/space gray look, and it hints that Apple is aiming this at younger users and students.

The pricing could be the real headline, though. Early chatter suggested a starting price around $599, though that’s not locked in.

Even if it lands more realistically around $799 or $899, it would still sit well below the M4 MacBook Air, potentially shaking up Apple’s entire pricing strategy.

If all of this pans out, we’re looking at a MacBook that’s cheaper, smaller, more colorful, and powered by a chip that was originally designed for a phone, yet still impressively fast.

This could be one of the most interesting Mac releases in years.

What this means for Windows

The introduction of an affordable MacBook threatens to disrupt markets where Windows and Chrome OS have reigned supreme.

Windows currently holds a dominant 71.68% global desktop market share, but Chromebooks have carved out a powerful niche, especially in education, commanding 93% of US school district purchasing plans for 2025.

A cheap, accessible Mac could shift this balance significantly, leveraging Apple’s ecosystem appeal and superior build quality to convert budget-minded consumers.

For Windows laptop manufacturers like Dell and HP, the competition is intensifying.

These companies have long competed on price alone, but Apple’s entry into the budget space brings brand prestige, ecosystem integration, and superior design to a previously underserved market.

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