Apple plans to launch its first entry-level MacBook, which will adopt an iPhone-level processor for the first time, with a price potentially below $799. This product is equipped with only 8GB of memory, which is half of the 16GB configuration of the existing MacBook Air and MacBook Pro models, but it is expected not to significantly affect smooth operation and will support Apple's AI assistant, Apple Intelligence.
On Thursday, according to reports from Mirror Daily citing sources, Apple is highly confident about the sales prospects of this first low-priced entry-level laptop. Industry insiders revealed that Apple expects annual shipments of this product to reach 5 to 8 million units, equivalent to about 20% to 30% of last year's Mac sales.
In terms of the supply chain, Quanta will receive more than half of the orders, while Apple's long-term manufacturing partner Foxconn will take on the remaining orders. Despite rising memory prices, Apple has signed new DRAM and NAND supply agreements with memory manufacturers such as Samsung Electronics, SK Hynix, and Kioxia, which are expected to ensure supply at least until the first half of 2026.
This product strategy highlights Apple's ability to hedge cost pressures through high-margin service businesses and self-developed chips, opening up new growth space in the highly competitive entry-level laptop market.
<h2>Significant Reduction in Memory Configuration, Integration of Software and Hardware Becomes Key</h2>
The 8GB memory configuration of this entry-level MacBook is only half of that of existing models, but Apple relies on highly integrated design to achieve more efficient and flexible memory usage. Reports indicate that, in contrast, Wintel laptops based on Windows software and Intel hardware use an open architecture, with operating systems and hardware from different suppliers, limiting the degree of software and hardware integration and requiring additional memory redundancy.
Insiders stated that despite the lower memory configuration, the smoothness of operation may not be significantly affected. The device will also support Apple Intelligence, keeping it competitive among entry-level products.
<h2>Supply Chain Layout to Address Rising Memory Prices</h2>
On the supply side, insiders revealed that Apple has signed new DRAM and NAND supply agreements with memory manufacturers including Samsung Electronics, SK Hynix, and Kioxia. These contracts are expected to ensure supply at least until the first half of 2026. With supply issues largely resolved, reports indicate that the impact of rising memory prices on Apple's financial performance may be relatively limited.
In manufacturing, Quanta will receive more than half of the assembly orders, while Foxconn will take on the remaining portion. This order allocation reflects Apple's balanced strategy in supply chain management.
<h2>Service Business and Self-Developed Chips Hedge Cost Pressures</h2>
Reports indicate that the impact of rising memory costs on Apple may be limited, as the company's high-margin service business continues to expand. The service business includes iCloud, Apple Pay, Apple Music, Apple TV+, and the App Store, with gross margins of 70% to 80%. This business accounted for 26.2% of revenue in fiscal year 2025, up from 24.5% in fiscal year 2024, 22.2% in fiscal year 2023, and 19.8% in fiscal year 2022, with continuously growing profitability providing a buffer against memory price pressures
In addition, reports indicate that apart from memory, Apple has independently designed other key chips, including the M series processors for laptops, the A series processors for iPhones, the S series Bluetooth chips, and the C series 5G modem chips, deploying them at a sufficiently large scale to achieve economies of scale, resulting in significant cost savings for the company. This entry-level MacBook features an iPhone-level processor for the first time, further demonstrating Apple's strategy of reducing costs through chip reuse

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On October 26th, after the U.S. stock market closed, chip giant Intel released its Q3 2023 financial report. The report showed that Intel's total revenue in the third quarter fell 8% year-on-year to $14.16 billion, marking the seventh consecutive quarter of declining sales, although it was still higher than the market expectation of $13.53 billion. In the second quarter, revenue had previously dropped 15% year-on-year, and the company expects revenue to return to growth in the fourth quarter. However, the sales of the Network and Edge Group (NEX), which includes IoT and other segments, fell 32% year-on-year to $1.5 billion. More importantly, the server chip division, named "Data Center and Artificial Intelligence," has yet to recover growth, with third-quarter revenue declining 10% year-on-year to $3.8 billion. Facing multiple competitive pressures, do you think Intel can turn the tide in the AI era?

On October 26th, after the U.S. stock market closed, chip giant Intel released its Q3 2023 financial report. The report showed that Intel's total revenue in the third quarter fell 8% year-on-year to $14.16 billion, marking the seventh consecutive quarter of declining sales, although it was still higher than the market expectation of $13.53 billion. In the second quarter, revenue had previously dropped 15% year-on-year, and the company expects revenue to return to growth in the fourth quarter. However, the sales of the Network and Edge Group (NEX), which includes IoT and other segments, fell 32% year-on-year to $1.5 billion. More importantly, the server chip division, named "Data Center and Artificial Intelligence," has yet to recover growth, with third-quarter revenue declining 10% year-on-year to $3.8 billion. Facing multiple competitive pressures, do you think Intel can turn the tide in the AI era?

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Although the "budget version" MacBook has lower memory configuration, its operating smoothness may not be significantly affected, and it will support Apple Intelligence, expected to remain competitive in the entry-level product segment. Industry insiders revealed that Apple expects the annual shipment of this product to reach 5 to 8 million units, accounting for about 20% to 30% of last year's Mac sales

- Apple plans to launch its first entry-level MacBook featuring an iPhone-level processor, likely priced under $799 and equipped with 8GB of RAM.  
- The company expects annual shipments of this model to reach 5 to 8 million units, representing about 20% to 30% of last year's Mac sales, with Quanta and Foxconn handling assembly orders.  
- Apple's strategy mitigates rising memory costs through a strong services business and in-house chip designs, showcasing its ability to compete in the budget laptop market effectively.

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For the first time using iPhone chips! Apple plans to launch a "budget version" MacBook, with a price possibly below $799