The launch of MacBook Neo — the most affordable laptop ever from Apple Inc. (NASDAQ:AAPL) — could slightly lift overall revenue while helping the tech giant win over a new generation of student users, according to analyst Gene Munster.
Apple Targets Students With Its Cheapest Mac Yet
On Wednesday, Apple unveiled the MacBook Neo with a starting price of $599, or $499 for education customers, marking a dramatic drop from the previous entry-level Mac price of about $999.
The new 13-inch laptop runs on the Apple A18 Pro chip, the same processor used in the iPhone 16 Pro lineup and is positioned as a lower-cost option designed primarily for students and first-time Mac users.
In a video segment titled Pressure Points, Munster said the device could modestly increase Apple’s overall revenue while expanding its reach in the education market.
“The new $AAPL MacBook Neo should add 0.5% to overall revenue for the next year,” Munster wrote, adding that he believes the product “won’t impact margins.”
MacBook Neo Could Add Billions To Apple’s Mac Business
Munster estimated the device could add roughly $2 billion in annual revenue to Apple’s Mac segment.
Apple’s Mac business generated about $34 billion in fiscal 2025, meaning the Neo could provide roughly a 6% boost to that segment if adoption plays out as expected.
The analyst said Apple is targeting a large pool of potential buyers in the U.S. education market, where many students currently rely on Chromebooks.
“This market, if we just take the U.S. alone, is about 25 million students,” Munster said in the video, adding that investors may think of this as “new customers for Apple.”
Margins Unlikely To Take A Hit
Despite the lower price, Munster said the Neo is designed with modest hardware — including 8GB of memory and 256GB of storage — allowing Apple to maintain profitability.
“My take is that they’re probably doing this at a similar margin profile as their existing products,” he said.
Munster added that Apple’s gross margins could remain near 48% across the coming quarters, suggesting the lower-cost Mac should not pressure profitability even as it expands Apple’s customer base.
Price Action: Apple shares closed at $262.52 on Wednesday after declining 0.47%. In after-hours trading, the shares gained 0.072%, according to Benzinga Pro.
Benzinga’s Edge Stock Rankings show that AAPL is trending lower in the short and medium term but remains in an upward trend over the long term, while its Quality score sits in the 94th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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