Core Viewpoint - Apple is preparing to enter the low-cost laptop market with a new budget Mac aimed at students, businesses, and general consumers, targeting users of Chromebooks and entry-level Windows PCs [1][3]. Group 1: Product Details - The new laptop, codenamed "J700," is currently in internal testing and early production stages with overseas suppliers, expected to launch in the first half of next year [1]. - The pricing of the new laptop will be below $1,000, utilizing lower-cost components, including an iPhone-level processor and a more basic LCD screen, with a slightly smaller size than the current 13.6-inch MacBook Air [3]. - This will mark the first time Apple uses an iPhone processor in a Mac, rather than the M-series chips designed specifically for computers, although internal tests indicate that the iPhone chip outperforms the earlier M1 chip used in previous MacBooks [3]. Group 2: Market Context - Apple has previously tested the waters by selling the M1 MacBook Air for under $700 through channels like Walmart, but the new laptop will be a completely new design rather than a discounted version of an old model [4]. - Currently, the cheapest Mac available is the M4 MacBook Air priced at $999 (or $899 for educational pricing), while Chromebooks can be found for as low as a few hundred dollars, with higher-end versions around $600 [4]. - In the education market, Apple's entry-level iPad combined with the Magic Keyboard Folio is priced around $600, and the new budget Mac is expected to be in a similar price range but with longer battery life and full macOS functionality [4]. Group 3: Financial Performance - The Mac segment is the fastest-growing hardware product for Apple, with revenue increasing by 13% year-over-year to $8.73 billion last quarter [4]. - Although growth is expected to slow in the current quarter due to the limited release of a new entry-level MacBook Pro with the M5 chip, multiple updates are anticipated in 2026, including M5 versions of the MacBook Air, MacBook Pro, Mac mini, and Mac Studio, as well as a new MacBook Pro featuring the M6 chip and OLED touchscreen expected by late 2026 or early 2027 [4].