Apple’s MacBook Neo attracts a new generation of buyers

Nearly three months since its launch, Apple’s MacBook Neo is already proving to be a breakout hit, drawing in a wave of new customers and upending conventional wisdom about who typically buys a Mac. The Cupertino giant shipped 1.1 million MacBook Neo units in the quarter ending March, according to IDC data shared with TechCrunch. That figure surpasses the debut-quarter shipments of the MacBook Air (M5) and MacBook Pro (M5), which moved over 900,000 and 550,000 units, respectively.

The shipment numbers are especially striking given the Neo’s limited availability. It went on sale in mid-March, leaving only about three weeks of sales in the quarter, noted Navkendar Singh, associate vice president at IDC. Shipments, he added, started climbing sharply from early April.

Priced at $599 at launch,roughly 45% less than the entry-level MacBook Air,the MacBook Neo was built to widen the Mac’s appeal. It keeps many of the design hallmarks of Apple’s premium notebooks, including an aluminum chassis and a 13-inch Liquid Retina display, but makes trade-offs to hit the lower price point. The base model runs on an A18 Pro chip instead of an M-series processor and includes 8GB of memory.

The market is responding strongly. Singh said demand has exceeded expectations in multiple countries, including India, where retailers have struggled to secure enough inventory. Of the MacBook Neo units shipped globally in the March quarter, 44% went to the U. S. India accounted for close to 18,000 shipments, despite the laptop being available for only a few weeks there. The Neo starts at ₹69,900 (about $733) in India, compared with ₹119,900 (around $1,260) for the base MacBook Air.

“Rising prices of Windows notebooks and attractive pricing of the Neo have led to its very high demand,” Singh told TechCrunch.

The Neo’s popularity could shift Apple’s approach in markets like India, where older MacBook models,such as the M1, M2, and M3 Air,have historically driven volume when sold at discounted prices during sales events, according to IDC senior market analyst Bharath Shenoy. “We need to see how that pans out going ahead due to Neo’s rising popularity,” Singh said.

During Apple’s April earnings call, CEO Tim Cook described customer response to the MacBook Neo as “off the charts” and acknowledged supply constraints following the launch. He also noted that Apple set a March-quarter record for customers new to the Mac, partly thanks to the Neo.

Counterpoint Research sees the Neo’s significance extending beyond early sales. The laptop is helping Apple reach beyond its traditional base by attracting first-time Mac buyers and competing in lower-priced notebook segments where Macs have historically had little presence, said David Naranjo, associate director at the firm. He added that the Neo could eventually help Apple increase its share of the $400-$699 notebook market from roughly 2% to around 15%.

“Although it is still early, the MacBook Neo launch stands out as one of Apple’s most strategically important recent Mac releases, especially as the wider PC market deals with rising memory costs and ‘shrinkflation,’ while Apple is expanding its reach,” Naranjo told TechCrunch.

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

The MacBook Neo’s early success is already spurring competition. Dell this week unveiled a new XPS 13, starting at $699, aimed at the same segment. The company said the Neo’s launch had demonstrated strong demand for premium-quality laptops at more accessible prices.

Still, the launch-quarter figures may only hint at what’s to come. Singh forecasts a “very big spike” in Neo shipments in the current quarter as Apple works through supply constraints and expands availability. Apple did not respond to a request for comment.