If I had a nickel for every time over the past two decades that I’ve heard someone say, “Apple is many things, but affordable isn’t one of them,” I’d probably have enough to buy the latest 16-inch M5 MacBook Pro, introduced this week at an eye-watering $2,699. And if I had another nickel for every time someone shot back, “What do you expect? Apple is a luxury brand—like Ferrari, after all,” I could probably pick up the $3,299 Studio Display XDR the company unveiled this week, too.
The thing is, despite the high prices of the devices I’ve mentioned, these arguments were never entirely accurate. That became especially true after this week, when, along with those pricey new devices, Apple introduced the MacBook Neo, officially completing its transition from a luxury brand to an affordable gadget maker.
The Ferrari of the computer world?
To a degree, I get why people have long claimed things like “Apple is the Ferrari of the computer world” or “Apple is the Louis Vuitton of the smartphone world.”
Like those companies behind high-end cars and clothing, Apple makes well-designed products that attract a loyal following. And the social signifiers that have always been attached to its products—such as creativity, affluence, and iconoclasm—are probably enough on their own to inspire some people to paying a premium for Apple goods simply to indicate that they’re a person of both taste and means.
But merely looking at the history of Apple’s products and their prices, especially over the past twenty years, is enough to dispel any argument that Apple is solely a luxury brand. Sure, Apple has always charged a lot for MP3 players, computers, and smartphones. But this “luxury” company has also been aware that its high prices can exclude certain customers from its ecosystem. And for some time, it’s been releasing affordable products to counteract that tendency across many of its product categories.
For example, back in 2005, when the average Mac desktop model cost more than $1,000, Apple introduced its first Mac mini, for just $499. Even today, after twenty years of inflation, that tiny miracle costs just $599.
Also in 2005, when the average iPod would set someone back around $300, Apple introduced the iPod shuffle, for just $99. In 2016, Apple brought affordability to its smartphone line with the iPhone SE, which cost just $399 when the average iPhone cost nearly $700. In 2017, Apple introduced the fifth-generation iPad for just $329. Today, that entry-level iPad price point has increased by a mere $20. And in 2020, Apple introduced the Apple Watch SE for just $279, when the average Apple Watch cost between $400 and $900.
My point is that, while many view Apple as a luxury brand with high prices, this isn’t the whole story. Over the past twenty years, Apple has also worked to become an affordable tech company. And with the launch of its latest product this week, Apple has completed its transition to offering budget-friendly gadgets across its main product lines.
Enter the MacBook Neo
While Apple has worked for twenty years to bring affordability to the majority of its product lines—desktop, MP3 player, smartphone, tablet, and smartwatch—one major category was left out: the laptop.
The average starting price for the MacBook line, which until this week only included the MacBook Pro and the MacBook Air, has always floated around $999—and that’s for the barebones, lowest-spec laptop. Its highest-end spec’d-out MacBook Pros frequently fetch prices over $3,000.
But this week, Apple introduced the MacBook Neo, its first truly “affordable” laptop, starting at just $599. And the Neo is an extraordinary computer for that low price point. It has a 13-inch display, is powered by the A18 Pro chip, runs the same macOS as Apple’s professional laptops, and has all the ports and connectivity an “ordinary” computer user will ever need.
Oh, and if you’re a student, you can pick one up for just $499.
Yep, five hundred bucks for a brand new Apple laptop. In 2026.
There’s no way anyone can look at the Neo alongside Apple’s other affordable options, like the iPhone 17e, M4 Mac mini, iPad, and Apple Watch SE 3, and claim that Apple is solely a luxury brand anymore. For every major product category Apple has, the company now also offers affordable options, all of which are sufficient for 90% of ordinary computer users’ needs.
Affordability now, profit later
Of course, the question is, why is Apple doing this now? If the company previously had no problem selling $1,000-plus laptops, why introduce one with many of the same features for as low as $500?
Two main reasons come to mind: First, the MacBook Neo, like the Mac mini and iPod shuffle before it, is essentially a “gateway drug” to Apple’s platform. Once most people try using Apple’s desktop operating system, macOS, they find Windows fairly unrefined and clunky. Apple knows that if it can get a $599 MacBook Neo user hooked on its platform, that user is likely to buy more expensive MacBooks later as their needs—and income—grow.
Second, there’s the services revenue. With rising inflation, consumers are more price-conscious than ever. If you just need a basic computer for music streaming, word processing, and web browsing, there is no shortage of affordable PCs and Chromebooks that will do the job just fine—especially since so much of everyday computer work is now cloud-based.
Users of Microsoft and Google laptops often choose those companies’ subscription services for online storage and office suites because they are most easily integrated with their respective hardware, just like Apple’s iCloud Plus and Creative Studio are with its Macs. Apple knows it risks losing a lot of recurring, high-margin services revenue if consumers looking for affordability direct their spending to competitors. However, if these consumers buy a MacBook Neo instead, Apple can probably shift their subscription spending to its own services.
Of course, even with this new laptop marking the company’s shift toward affordability, critics will keep calling Apple a luxury brand. But at least now, if I start collecting a nickel every time I hear it, I might have enough saved in just a few short years to buy a MacBook Neo.