A $699 Mac Has Microsoft Rethinking Its Cheapest Surface

The budget laptop space looks set to get a lot more exciting with Apple adding its Mac capabilities to the mix at an affordable price point.

With the MacBook Neo priced at $699, not only does it provide value for money, but it also paves the way for an array of mobile applications and games, which have been seen mostly on iPhones and iPads till now.

This may well transform the expectations of consumers about budget laptops and the approach developers take to their target audience. With Apple making its presence felt at the lower end, Microsoft may have to reevaluate its Surface line-up.

Why does a $699 Mac change the app business

Apple released the Neo in March using the A18 Pro processor, which debuted in the iPhone 16 Pro, while Macworld included it in October as Apple’s most affordable laptop at $699 after its price increase in June. The wider PC market is contracting. 

IDC’s preliminary count for the third quarter had Apple gaining share even as Mac shipments fell, with worldwide shipments down sharply, and the research firm blamed vendors and retailers who stocked up early in the year to get ahead of price rises. According to IDC, the combination of high inventories and weak demand at high prices is expected to result in promotions soon, although pricing will remain significantly higher than last year.

Because the Neo is an Apple silicon Mac, iPhone and iPad apps appear in its App Store with a “Designed for iPhone” or “Designed for iPad” badge, according to Apple’s App Store guide, unless the developer opts out in App Store Connect. The guide says most of those apps are compatible, though features that depend on a gyroscope or complex Multi-Touch gestures may not work, and apps whose full Mac functionality hasn’t been verified carry a “Not verified for macOS” label. 

Last War: Survival, which Sensor Tower named as the top earner in strategy, the only genre to grow revenue, downloads and time spent in 2025, shows the system in practice, with an iPad listing that names the Mac under compatibility and sells packs through in-app purchase. That catalog makes mobile gaming apps the category to watch on the Neo, from strategy games to the coin-selling casino titles that run as iPad apps.

Who makes money when phone apps land on laptops

Apple receives its take regardless of where the app operates. Its review guidelines require in-game currencies to be sold through in-app purchase, and its Small Business Program sets a reduced 15% commission for developers with up to $1 million in annual proceeds, with the standard rate applying above that.

A coin pack bought on a Mac goes through Apple’s purchase system just as one bought on an iPhone does. Real-money casino apps sit under a separate rule, since Apple requires them to be licensed and geo-restricted where they are used and free to download, while Slotomania states on its listing that it offers no real-money gambling and earns from virtual items.

An additional screen appears as smartphone gaming gets less popular. Sensor Tower’s 2025 gaming data put mobile game revenue at $82 billion, barely up on the year before, and Oliver Yeh, the firm’s chief executive and co-founder, said mobile “has entered a more mature phase” in which the gains go to developers who focus on retention and monetization. A laptop window gives developers one more place to keep those players. Holding them depends on the app working away from a touch screen, where Apple lets users map gestures to the keyboard and trackpad, and the usual lessons about what makes users uninstall an app apply on a laptop as much as on a phone.

What does it mean for the holiday quarter

It has been the first year since the Neo has been available for sale that the November specials have been scarce. Macworld found Amazon taking only around $10 off the base Neo during October’s Prime Day sale, while Apple’s pricier MacBook Air and MacBook Pro models carried far larger cuts in that roundup.

Microsoft’s reported review comes weeks after Surface corporate vice president Brett Ostrum said Microsoft doesn’t build hardware for every PC category and that Windows PC makers serve the lower-priced end, though the company would consider requests for a cheaper Surface, according to Digital Citizen’s account of his comments. 

DigiTimes said rising supply-chain costs are now pushing Microsoft and other notebook makers to reassess their product strategies, and the lever it describes is a lower bill of materials for the entry model. Every Neo sold over the holidays is another laptop that can run the iPhone catalog, and a cheaper Surface would compete for those buyers.

What should a business reader take from it

Affordable hardware contributes to the app economy, which has become stagnant. Sensor Tower describes a phone market where revenue now depends on keeping players, and a laptop that runs those apps gives game developers a second screen without building a new product. Social casino studios selling coin bundles through in-app purchases are among those carrying their business model onto the Mac untouched.

Developers still decide whether to take part, and the opt-out in App Store Connect means the size of the Neo’s catalog is a business choice for each studio. The ones that allow their apps to be accessible get to reach a new set of laptop buyers at the lowest price Apple sells its laptops for.

Black Friday on November 27 is the Neo’s first. IDC said in October that high inventory could bring promotions, and Macworld’s Prime Day roundup found Apple’s cheapest laptop barely discounted, so the holiday weeks are where those two pressures meet.

FAQs

What is the MacBook Neo by Apple?

The MacBook Neo is the budget option offered by Apple and was introduced in March with the A18 Pro chip. It is the first Apple computer that allows the user to experience Apple’s macOS and use applications from iPhone and iPad on a more affordable computer.

Why is Microsoft reconsidering its cheapest Surface laptop?

Microsoft is planning to reconsider some components like the processor, memory, camera, and battery in order to make its manufacturing cheaper and compete with Apple’s MacBook Neo.

How does Apple generate profits from mobile games in the Mac environment?

Apple charges certain fees for eligible in-app purchases through its payment system. In-app purchases by developers participating in the Small Business Program may be subject to the 15% commission fee.

What does the new MacBook mean for mobile game developers?

Developers can now target more users without developing a Mac version of the application. Nevertheless, they will have to make sure that the application works properly with a keyboard, trackpad, and larger screen.