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Comment by amelius

14 hours ago

Apple is going to cannibalize their own laptop market.

M1 macbook air has been available at Walmart priced at $600-650 for years (8gb, 256 ssd). Why did that not cannibalize Apple's laptop market?

I think this is actually the reason the Neo has 8 GB of RAM (non-upgradable). It’s their anti-cannibalization strategy.

They’re relying on the huge portion of their existing laptop market who self-identifies as “tech-savvy” or “enthusiast” and thinks 8 GB of RAM is a non-starter.

Those folks will keep buying Mac laptops at double (or triple, quadruple, …) the price.

  • It has 8gb ram because the A18 pro chip has that baked in. They won't spend money on redesigning.

    If next iteration has A19 pro chip in it - it will have 12gb.

  • > I think this is actually the reason the Neo has 8 GB of RAM (non-upgradable). It’s their anti-cannibalization strategy.

    It has 8 GB of RAM because they wouldn’t be able to hit the price point of $599 with more; their target audience doesn't need more. It's also why the SSD is slower than a MacBook Pro or MacBook Air; it's the only device in the lineup other than the entry-level iPad with a sRGB display; the other devices have P3 Wide Color Displays. No Thunderbolt ports, only supports 1 external display and only at 4K. No Wi-Fi 7.

    These are some of the compromises they made to keep the price down. They're also using a binned A18 Pro with 5 GPU cores instead of the 6 core version in the iPhone 16 Pro and Pro Max.

    There are lots of potential customer for which a Mac laptop was out of reach; it's a lot more affordable at $49.91 /month for 12 months for the $599 model.

    Its display is better than PC laptops in the same price range, but that display is a non-starter for graphic designers, video editors, etc.

    That's why cannibalization is a non-issue.

> Apple is going to cannibalize their own laptop market.

As long as you buy a Mac laptop, Apple is fine with that, regardless of which one. That’s because they know who their customers are.

The Neo is in its own category; the $599/$699 Neo doesn’t compete with a 14-inch MacBook Pro with a M5 Pro, 24GB of RAM, and 1 TB SSD at $1899. If you know you need more RAM and storage than Neo, the M5 Mac Air is $1099. But if you need to stay under $1000, the decision is clear.

If anything, the Neo is more competitive with the entry-level iPad with 128 GB of storage at $349; with Apple's keyboard at $249, the total is $598, $1 less than the entry-level Neo.

For someone who wants a "real" laptop with more flexibility than an iPad, getting the $599 Neo is a no-brainer.

They famously ate their iPod market. It was the most successful consumer electric product ever and they destroyed it.

The iPhone has done well.

  • The smartphone destroyed the iPod. If Apple artificially made the iPhone not capable of playing songs, then people would just buy a Samsung phone (which could play music).

They are just covering all the market segments. This is for people who didn't want to shell out $1000 for a laptop for their kid, or have another one just to browse the web. Or they have an iphone but not a mac laptop, but now they might want one cause it's even cheaper than a phone. This will be pushed into schools probably as well.