"Back in 2016, it began experimenting with budget phones, launching the iPhone SE. In 2017, it announced a budget tablet, dropping the price of a new standard iPad under $400 for the first time. In personal computers, where Apple's upmarket branding was under less pressure from competitors, the company took its time, dropping the price of a new Mac Mini by $100 in 2023."
"First was an update to its budget iPhone line, replacing the 16E with a 17E at the same $599 price, despite rising memory costs and inflation. The surprise release was a new MacBook, the Neo, a $599 laptop with an iPhone processor, which is a full $500 cheaper than the cheapest MacBook Air, the price of which went up due in part to the aforementioned pressures."
"It's small, marketed toward young buyers (and their parents) in mind - 'conquer your courses,' 'perfect for learning,' 'updating after-school schedules,' and so on - and comes in new colors, including pink and, for some reason, bile green."
Apple has historically maintained a premium brand image, but recently shifted strategy to compete in budget market segments. Starting in 2016 with the iPhone SE and continuing with affordable iPads and discounted Macs, the company tested lower-priced offerings. This week, Apple committed fully to this strategy by releasing the iPhone 17E at $599 and introducing the MacBook Neo, a $599 laptop powered by an iPhone processor—$500 cheaper than the MacBook Air. The Neo targets young students with marketing emphasizing education and learning. These moves represent Apple's deliberate effort to maintain consistent, round price points across product lines despite inflation and rising memory costs.
Read at Intelligencer
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