Apple just revealed a lot about its ‘cheap’ MacBook

Apple has officially introduced the M5 MacBook Air, along with the M5 Pro and M5 Max variants of the MacBook Pro. Across the lineup, base storage and performance are up—and so are prices. The base MacBook Air now costs $100 more, while the M5 Pro and M5 Max MacBook Pro models come with an even heftier markup. A closer look at the updated pricing and technical specifications, as well as other relevant rumors, gives us a solid idea of what to expect from the “cheap” MacBook Neo launching as soon as tomorrow.

RAMping up

The RAM crisis has pushed many smartphone and computer manufacturers to hike their prices. To soften the blow, Apple has dropped the lowest storage tier from its entire MacBook line. This forces customers to pay more for the latest devices while giving Apple some flexibility with storage pricing.

The MacBook Air has long been Apple’s cheapest notebook, catering to students and junior professionals alike. It’s no longer as cheap, however. The M5 MacBook Air now starts at $1,099 and comes with 512GB of storage, discontinuing the psychologically tempting $999 256GB option. While customers requiring more than 256GB of storage won’t be paying extra, those with casual workflows will pay for storage they don’t need. That’s the gap Apple’s cheap MacBook will attempt to fill.

A Neo era

According to an accidental regulatory filing, Apple’s budget-friendly notebook will be dubbed the MacBook Neo. The branding has a trendy ring to it, making it appealing to younger Apple fans and high school students. It also fits the new era, where many workflows, including AI computing, have been offloaded to cloud servers. The device will act as an M1 Air reboot of sorts, reviving the lower specifications and affordable pricing.

Since late 2024, M2 and newer MacBook Air models have come with at least 16GB of RAM. The MacBook Neo, however, will likely be powered by the iPhone 16 Pro’s A18 Pro chipset, which offers 8GB of RAM. The difference in memory would clearly set the Air and Neo models apart, making picking the right MacBook less confusing.

Likewise, now that Apple has retired the 256GB storage capacity in the MacBook lineup, it would make sense to revive it through the MacBook Neo. This would lure casual users who don’t have a ton of local files and want to spend less than $1,099.

Apple’s A18 Pro and M1 chips perform similarly. As such, the MacBook Neo could act as a rebranded 2020 MacBook Air with a few compromises. Unlike the M1 MacBook Air, the Neo model is expected to miss out on the backlit keyboard, P3 color gamut, and True Tone technology. It’ll likely maintain the 400-nit brightness, however, and offer some exclusive, fun color options and a trendy new design.

Foundry

What about the price?

Beyond design and technical specifications, the million-dollar question remains: how cheap will the MacBook Neo be? Some rumors suggest that the upcoming notebook will cost as little as $599, while other reports point to the $699-799 range. Given that the cheapest MacBook now starts at $1,099, Apple could realistically get away with the higher pricing. I don’t believe it will, however.

Until recently, Apple was still selling 2020’s M1 MacBook Air through Walmart for just $599. Given that the MacBook Neo will likely share its 256GB storage, 8GB memory, and overall performance, it would be logical to maintain the same price. In fact, the MacBook Neo should theoretically be cheaper, as it won’t offer a backlit keyboard and the same display features as its M1 counterpart. Selling the MacBook Neo for $699-799 when the M4 MacBook Air was regularly discounted to $749 is irrational.

Plus, a recent report alleges that Apple internally describes the MacBook Neo as an “incredible value,” and that the company expects it to drive significant traffic to its stores. A starting price of $599 would fit this narrative, but $699-799 would not.

The MacBook Neo will, for the first time, give Apple a truly affordable laptop that it can officially promote through its online and physical stores, rather than hide on other websites. Additionally, customers are more likely to buy a 2026 computer than a 2020 one—even if, on paper, they perform similarly.