Apple’s MacBook Neo is attracting a new generation of buyers

Nearly three months after its debut, Apple’s MacBook Neo has emerged as an early success story, helping the Cupertino company reach new customers and challenge long-standing assumptions about who buys a Mac.

Apple shipped 1.1 million MacBook Neo units in the quarter ending March, according to data from market intelligence provider IDC, which was shared with TechCrunch, ahead of the recent launch of the MacBook Air (M5) and MacBook Pro (M5). These MacBooks shipped more than 900,000 and 550,000 units respectively in the first quarter of their debut.

The number is notable because the Neo was only available for three weeks during the quarter after it went on sale in mid-March, said Navkendar Singh, associate vice president at IDC, adding that shipments started to pick up from early April.

It was introduced in early March Starting at $599, about 45% less than the price of the entry-level MacBook Air, the MacBook Neo is designed to make the Mac more accessible to a wide range of buyers. The laptop retains much of the look and feel of Apple’s premium laptops, including an aluminum chassis and 13-inch Liquid Retina display, while making some compromises to reach the lower price point, including using an A18 Pro chip instead of an M-series processor and offering 8GB of memory in the base model.

So far, the market seems to be responding to Apple’s strategy. Singh said demand for the Nio has exceeded expectations in several countries, including India, as retailers struggle to secure sufficient inventory.

Of the MacBook Neo units shipped globally during the March quarter, 44% were shipped to the United States, according to IDC. Meanwhile, India accounted for nearly 18,000 shipments despite the laptop being available for only a few weeks during the period.

MacBook Neo Starts from INR 69,900 (about $733) in India, compared to INR 119,900 (about $1,260) for the entry-level MacBook Air.

“The rise in prices of Windows laptops and the attractive pricing of the Neo has led to very high demand for it,” Singh told TechCrunch.

The Neo’s popularity could also reshape Apple’s strategy in markets like India, where older MacBook models like the M1, M2 and M3 Air have historically been important volume drivers when sold at discounted prices during sales events, according to IDC senior market analyst Bharath Shenoy.

“We need to see how this will go ahead given the growing popularity of Neo,” Singh said.

Speaking during Apple’s April earnings call is CEO Tim Cook He said Customer response to the MacBook Neo was “off the charts” and she admitted the company was facing supply constraints post-launch. Cook also said Apple set a record March quarter for new Mac customers, driven in part by the Neo.

Counterpoint Research sees the Neo’s importance extending beyond its early sales. The laptop helps Apple expand beyond its traditional customer base by attracting first-time Mac buyers and competing in lower-priced laptop segments where Macs have historically had little presence, said David Naranjo, an associate director at the research firm.

He added that the Neo could eventually help Apple increase its share of the $400-$699 laptop market from about 2% to about 15%.

“Although it’s still early days, the launch of the MacBook Neo stands out as one of the most strategically important recent Mac releases for Apple, especially as the broader PC market deals with rising memory costs and ‘deflation’ while Apple works to expand its reach,” Naranjo told TechCrunch.

IDC’s Singh believes the opportunity extends beyond first-time buyers. He said Apple is targeting a much broader audience than previous Mac models, a strategy that could help the company gain share in the consumer and small business laptop segments.

The early success of the MacBook Neo is already causing competitors to respond. Dell this week unveil A new XPS 13, starting at $699, targets the same segment, and he said the arrival of the MacBook Neo showed strong demand for high-quality laptops at more accessible prices.

However, the launch quarter numbers may only tell part of the story, as Singh expects a “very significant bump” in Neo shipments in the current quarter as Apple works to overcome supply constraints and expand availability.

Apple did not respond to a request for comment.