In summary:
- Asus co-CEO S.Y. Hsu called Apple’s new $600 MacBook Neo “a shock to the entire industry” due to its disruptive pricing and aluminum build quality.
- PCWorld reports the budget MacBook features an iPhone processor and 8GB RAM, positioning it as a content consumption device that threatens existing PC makers.
- With laptop prices expected to rise 40% due to a RAM crisis, the Neo’s competitive pricing could make it a popular choice for students and budget-conscious consumers.
Apple’s budget-focused MacBook Neo, which starts at just $600, is getting a lot of attention. While it makes some compromises with a low-power iPhone processor and just 8GB of RAM, it’s come out just as laptop prices are soaring. Even Asus is impressed. One of its co-CEOs called the laptop “a shock to the entire industry.”
According to a machine translation of the latest Asus earnings call, co-CEO S.Y. Hsu said that Apple’s move into budget-friendly territory is a threat. “In fact, in the entire PC ecosystem, there have been a lot of discussions about how to compete with this product,” reads the translation.
Hsu wasn’t entirely complimentary. He went on to say that the MacBook Neo’s limited performance makes it a “content consumption” device, more akin to a tablet than a conventional laptop. And, to be frank, I’m calling BS on that bit of hedging. If an underpowered processor, limited RAM, and paltry storage makes a laptop a content consumption device, then Asus is selling a lot of them.
Browsing the official Asus online store, I can only find ten laptops currently selling for $600 or less. With one singular exception, the rather dated Vivobook 15, they’re all using 8GB of RAM or less. Most of them are Chromebooks, which by definition are less flexible and capable than a Windows laptop or a MacOS one. And not a single one of them has the Neo’s most appealing feature to me: a full aluminum chassis.
The MacBook Neo launches today, and from what limited information is available, it already seems to be a hit. Reviews are glowing, even with the hardware’s limitations, and pre-orders are already slipping out to several weeks. As I said in my initial write-up, I think Microsoft has a real problem on its hands, especially as it has zero Surface-branded products that are anywhere near the Neo’s entry price point.
Laptop prices are now projected to rise as much as 40 percent due to the RAM crisis. Between the Neo’s low, integrated memory and Apple’s ability to swing a big stick in the supply chain, it seems to be making the best of a bad situation with the low-priced MacBook. I wouldn’t be surprised to see it as the student laptop of choice at the end of summer.
Author: Michael Crider, Staff Writer, PCWorld
Michael is a 15-year veteran of technology journalism, covering everything from Apple to ZTE. On PCWorld he's the resident keyboard nut, always using a new one for a review and building a new mechanical board or expanding his desktop "battlestation" in his off hours. Michael's previous bylines include Android Police, Digital Trends, Wired, Lifehacker, and How-To Geek, and he's covered events like CES and Mobile World Congress live. Michael lives in Pennsylvania where he's always looking forward to his next kayaking trip.