Apple's $599 MacBook Neo sparks budget laptop war as rivals scramble to compete

Apple's entry-level MacBook Neo is shaking up the PC market after posting sales figures that far exceeded expectations. Priced at 990,000 won (about $648) in South Korea — cheaper than the iPhone 17 at 1.29 million won — the MacBook Neo became the fastest-selling model in Apple's current laptop lineup almost immediately after launch. With sales momentum well ahead of projections, Apple is now moving to roughly double its production target, prompting Windows PC makers to rush out their own budget laptop offerings in response.

Apple is pursuing a plan to raise its MacBook Neo shipment target for this year from an initial 5 million to 6 million units to approximately 10 million units, according to multiple IT tipsters including Ming-Chi Kuo and Tim Culpan on Friday.

The move follows sales that have significantly outpaced earlier forecasts since the MacBook Neo launched in March.

The MacBook Neo is Apple's most affordable laptop, starting at 990,000 won in South Korea and $599 in the United States. Students and other education buyers can purchase it for $499 after an education discount, making it the lowest-priced Apple notebook currently on sale.

Industry observers say price competitiveness is the central driver of the MacBook Neo's strong performance. By bringing a MacBook within reach of roughly 1 million won, Apple has drawn in students and first-time Mac buyers who previously viewed the brand as out of their price range.

According to first-quarter 2026 sales tracking data from market research firm IDC, the MacBook Neo sold 1.1 million units in its first three weeks on sale. The M5 MacBook Air, released during the same period, moved 900,000 units, while the M5 Pro- and M5 Max-equipped MacBook Pro sold 550,000 units.

A PC and laptop display at a hypermarket in Seoul. [Yonhap]

The MacBook Neo's popularity is putting pressure on Windows PC makers. Apple's full entry into the budget laptop segment is eroding the price advantage that Windows notebooks have long held over their Mac counterparts.

In response, Acer recently unveiled the Swift Air 14 in the US market, starting at $699 — the same price as the MacBook Neo configuration with 512GB of storage and a Touch ID button.

Dell is also set to release a new XPS 13 in July, likewise starting at $699 to match the MacBook Neo's entry price. A student pricing tier will be set at $599.

The industry broadly views the MacBook Neo as having reset the benchmark for the budget laptop market. Shortly after the MacBook Neo launched, Asus CFO Nick Wu called it "a shock to the entire market." Asus Chairman Jonney Shih more recently told the company's annual shareholder meeting that Apple's cost-efficiency strategy offered lessons worth learning, and that he saw the development as an opportunity.

Yet as the budget laptop market expands, so does the strain on manufacturers. Rising prices for key components — including memory chips and CPUs — are squeezing the margins of low-cost notebooks that must hold the line on price.

A staff member examines laptops at a store in Seoul. [Yonhap]

According to TrendForce, supplies of laptop DRAM and NAND flash have tightened this year, while Intel has raised prices on entry-level CPUs by more than 15 percent. Should both pressures compound, analysts warn that mainstream laptops currently priced around $900 could rise by as much as 40 percent.

The demand outlook is also uncertain. TrendForce cut its global laptop shipment forecast for 2026 on March 30, projecting a 14.8 percent decline from the prior year. Sub-$500 budget PCs are expected to take the hardest hit.

rim@heraldcorp.com