Apple is preparing to make a bold entry into the low-cost laptop segment with plans to launch an affordable Mac model in the first half of next year, according to a report by Bloomberg News. The move marks the tech giant’s first serious push to compete directly with Google’s Chromebooks and entry-level Windows PCs.

Codenamed J700, the upcoming device is designed for students, small businesses, and casual users whose needs revolve around web browsing, document editing, and light media work. By offering a more accessible price point — well under $1,000 — Apple hopes to attract cost-conscious consumers, including those considering an iPad but still preferring a traditional laptop form factor.

To achieve this lower price, Apple plans to use less-advanced components, including an LCD display under 13.6 inches and, for the first time, an iPhone processor instead of a chip specifically engineered for Mac computers. Internal testing reportedly shows the smartphone processor outperforms the M1 chip used in earlier Mac models.

The budget Mac is currently undergoing active testing and early production with overseas suppliers, signaling Apple’s intent to bring the product to market swiftly.

If launched as expected, the new model would become Apple’s most affordable laptop, undercutting the $999 M4 MacBook Air — or $899 for students — and potentially expanding Apple’s user base among younger and price-sensitive demographics.

Apple’s latest quarterly report showed Mac sales of $8.73 billion, slightly above analyst forecasts. Analysts say the planned budget Mac could strengthen Apple’s position in the global PC market, where affordability and accessibility continue to drive growth.