Rumor Mill
Apple (AAPL) is not known for low-end products. Apple’s consumer electronics products tend to be premium priced models with high-level specs and compete at the flagship or upper mid-priced levels. For the most part this has served Apple well with a devoted user base and a cult-like following. That said, given inflation leading to rising prices and more recent strength in the US dollar against other currencies, foreign consumers face greater challenges in terms of typical purchase decisions. In Japan Apple has raised prices by 30%+ and similarly South Korean Apple prices have seen a 20%+ increase, and the threat of tariffs has done even more damage from a psychological standpoint.
Typically, as with most CE producers, Apple sets a list price for its products, which it expects retailers will hold for between 30 and 60 days in most cases. While Apple sells at list for an extended period, retails have some leeway as Apple sets a MAP (Minimum Advertised Price), essentially the lowest price a retailer can sell the product for. This is strictly monitored, although we note that some retailers use gift card inclusions to create a lower price without violating the MAP. Apple leads the way for special event discounts and one-time offers that help retailers during holidays and special events, while high volume purchasers can get up to a 10% discount, as do educational buyers.
Typically, as with most CE producers, Apple sets a list price for its products, which it expects retailers will hold for between 30 and 60 days in most cases. While Apple sells at list for an extended period, retails have some leeway as Apple sets a MAP (Minimum Advertised Price), essentially the lowest price a retailer can sell the product for. This is strictly monitored, although we note that some retailers use gift card inclusions to create a lower price without violating the MAP. Apple leads the way for special event discounts and one-time offers that help retailers during holidays and special events, while high volume purchasers can get up to a 10% discount, as do educational buyers.
Figure 1 - Price Chart (Amazon) - 2025 MacBook Air 13" M4 16GB - Source: Amazon
Figure 2 - 2025 Apple MacBook Pro 14" M4 24GB - Source Amazon
However, this leaves a large portion of the consumer population, those that do not typically purchase or need flagship devices, to other brands and we believe Apple has come to the realization that if done carefully, the company can maintain its elite image but expand its customer base with lower priced devices. Apple released the iPhone 16e, a trimmed down version of the iPhone 16, in February, with a less bright display, an older GPU, and a slower charge time, for $200 less ($599) than the initial iPhone 16 price ($799), a 25% lower price cut, and now rumors are circulating that Apple is developing a lower priced MacBook.
The rumors abound concerning this potential new product, but the focus is really on two characteristics. The first being the fact that the new device is not expected to use Apple’s M series chipsets but will use the same chipset used in the iPhone 16 Pro to reduce costs. There are some other smaller modifications but both devices are quite similar, although the new device is expected to be priced between $200 and $300 lower than the current MacBook Air ($999 base price), and a few optimists expect even lower pricing. This would give Apple greater access to middle-tier buyers and could be advertised as a model designed for the educational market, avoiding tarnishing the premier Apple image.
That said, should such a device appear, it will have a distinct effect on the mid to low end laptop market and the Chromebook market. While Chromebooks initially were priced below $300 to offer a ‘simulated’ client-server environment, they have increased in price over the last few years, averaging close to $500 currently. A $600 or $700 MacBook would put significant pressure on Chrome book prices and could lead to substantial deterioration in the category. At the same time the low-end laptop market would face the same pressure, although with a more sustainable and diverse product mix. Again, these are rumors and have yet to be confirmed or even acknowledged by Apple, so we expect the usual mock-ups, ‘visualizations’, supplier whispers, and knowledgeable sources to continue to feed the flames, but from a product perspective such a device does make sense and Apple’s carefully crafted advertising could keep it from casting a lower class shadow on Apple’s premium products. After all, not everyone buys the top of the line.
The rumors abound concerning this potential new product, but the focus is really on two characteristics. The first being the fact that the new device is not expected to use Apple’s M series chipsets but will use the same chipset used in the iPhone 16 Pro to reduce costs. There are some other smaller modifications but both devices are quite similar, although the new device is expected to be priced between $200 and $300 lower than the current MacBook Air ($999 base price), and a few optimists expect even lower pricing. This would give Apple greater access to middle-tier buyers and could be advertised as a model designed for the educational market, avoiding tarnishing the premier Apple image.
That said, should such a device appear, it will have a distinct effect on the mid to low end laptop market and the Chromebook market. While Chromebooks initially were priced below $300 to offer a ‘simulated’ client-server environment, they have increased in price over the last few years, averaging close to $500 currently. A $600 or $700 MacBook would put significant pressure on Chrome book prices and could lead to substantial deterioration in the category. At the same time the low-end laptop market would face the same pressure, although with a more sustainable and diverse product mix. Again, these are rumors and have yet to be confirmed or even acknowledged by Apple, so we expect the usual mock-ups, ‘visualizations’, supplier whispers, and knowledgeable sources to continue to feed the flames, but from a product perspective such a device does make sense and Apple’s carefully crafted advertising could keep it from casting a lower class shadow on Apple’s premium products. After all, not everyone buys the top of the line.
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