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Apple has a reputation for selling premium (i.e., expensive) products, but the company upended that narrative this week with the launch of the $599 MacBook Neo. As expected, the wider PC industry has taken notice.
During an earnings call on March 10 (transcribed by Seeking Alpha and reported by TechRadar), Asus Chief Financial Officer Nick Wu admitted that the arrival of a sub-$600 MacBook has sent a "shock" through the entire market. For years, Windows OEMs and Chromebook manufacturers have dominated the entry-level space. Now that the Neo is here, PC vendors are reportedly scrambling to figure out how to compete.
Article continues belowThe Neo is more than a tablet
Because the Neo runs on the A18 Pro (an iPhone-class chip) and is capped at 8GB of non-upgradable unified memory, the argument is that it's more of a "content consumption" device than a "real" laptop.
"The Neo feels more like a tablet because tablets are mostly for content consumption," Wu noted. "Of course, it's not that it cannot do all the work, but considering user experience and those hardware limitations, the experience... differs significantly from mainstream products."
On paper, Wu has a point. If you're running heavy CAD software or editing 8K video, 8GB of RAM and a mobile-first chip will quickly hit their limits. In that world, a mainstream Windows laptop with 16GB of RAM and an Intel Core Ultra processor would outperform it every time. But here's what Wu isn't addressing: most people buying a $600 laptop aren't aiming for heavy workloads.
The “shock” to the system
Mid-range Windows laptops at similar prices often feature creaky plastic builds and dim sub-300-nit displays. Conversely, Apple delivers a $599 laptop with an aluminum chassis, a bright Liquid Retina display (around 452 nits in our testing), and seamless integration with the Apple ecosystem.
Given Apple's historically very premium pricing, launching such an affordable product is certainly a shock to the entire market."
Nick Wu, Asus Chief Financial Officer
Wu acknowledged that "Apple's historically very premium pricing" made this affordable entry point a surprise. He noted that all major PC vendors are now "seriously discussing how to compete with this product in the entire PC ecosystem."
If that's the case, we could see a wave of “Neo-killers” from Asus, Dell, HP, and others soon. To truly compete, though, these companies can't just add more RAM—they'll need to match Apple's build quality and ease of use.
Can PC makers realistically match the Neo’s value?
Announcing a sub-$600 laptop is easier said than done, especially amid rising component costs thanks to the ongoing "RAMageddon." Then there's the ecosystem question: Will Windows users actually switch?
Wu pointed out that the "Intel faction" and "Apple faction" have historically stayed in their lanes due to software differences. He's skeptical that a $599 price tag alone will convince lifelong Windows users to learn macOS.
"Is the price of that product entering the mainstream sufficient for incentive? That really remains to be seen," Wu said.
Wu isn't wrong about ecosystem inertia, but for those who grew up on the best iPads and best iPhones, the MacBook Neo feels like a natural step up. If PC makers respond with just cheaper Windows machines, they're missing the broader appeal of what the Neo brings.
Outlook
Wu said the "final market competition outcome is hard to predict," but one thing is clear: consumers stand to win. If the Neo pushes Asus and its peers to upgrade subpar screens and plastic frames on $600 laptops, the entire industry improves.
PC makers might view the Neo as limited due to its 8GB of RAM, but for millions who want an elegant, affordable computer for school, browsing, and everyday tasks, those limitations simply won't matter.
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