Apple Reportedly Working on a Budget MacBook Powered by iPhone Chip

Low-Cost MacBook with iPhone A18 Chip Set for Early 2026

Apple plans to launch a cheaper MacBook next year, marking a major shift in its laptop strategy. The company is developing a low-cost Mac powered by an iPhone processor, known internally as the A-series chip. The new notebook, code-named J700, is currently in testing and early production with overseas suppliers.

According to Bloomberg, Apple aims to release the device in the first half of 2026. It will cost well under $1,000, positioning it below the M4 MacBook Air and much closer to the price of Chromebooks and entry-level Windows laptops. The notebook will use less-advanced components, including a lower-end LCD display that’s smaller than the 13.6-inch screen on the MacBook Air.

Apple’s strategy shift

This would be the first Mac to use an iPhone processor instead of an M-series chip. Bloomberg says internal tests show the smartphone chip can outperform Apple’s early M1 Macs. The device will likely appeal to students, casual users, and businesses that need affordable web and document tools rather than high-performance hardware.

Apple analyst Ming-Chi Kuo first mentioned the project earlier this year, saying it would use an A18 Pro processor and enter production in late 2025 or early 2026. The new Bloomberg report aligns with that timeline, suggesting Apple is preparing for an official launch window.

Competing with Chromebooks and Windows PCs

Apple currently dominates the premium market but has little presence in the budget laptop space. The company’s cheapest Mac is the $999 M4 MacBook Air, or $899 for education customers. It still sells the older M1 MacBook Air through Walmart for around $649. But that model uses a five-year-old design. The upcoming J700 MacBook will reportedly be a new design built for affordability, not a discounted older model.

Gurman’s report frames the low-cost Mac as a direct response to Chromebooks, which dominate U.S. schools and start at a few hundred dollars. Apple hopes to attract students who prefer a traditional laptop experience over the iPad.

What comes next

Apple is also planning several Mac updates for 2026. These include M5 versions of the MacBook Air, Mac mini, and Mac Studio, along with new MacBook Pros powered by M5 Pro and M5 Max chips. Later that year, Apple is expected to introduce an M6 MacBook Pro with an OLED touch screen.

If successful, the cheaper A-series MacBook could help Apple expand its market share beyond premium users. It’s the company’s first clear step toward competing on price without losing its identity in design or software integration.

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