The MacBook Neo led me to understand that Apple still hasn't figured out how to create a genuinely excellent budget iPhone.

      Apple's primary business continues to center around the iPhone, which generates approximately half of its revenue. Therefore, it’s particularly surprising that the company has managed to create a more impressive entry-level Apple laptop compared to an entry-level iPhone.

      The MacBook Neo starts at $599 in the US, offering consumers a fully aluminum frame, a 13-inch high-resolution Liquid Retina display, Apple silicon, and all-day battery life. Apple clearly defines its creation: it’s not a Pro model equipped with powerful M series processors. Despite the cutbacks in hardware specifications, it still presents itself as a well-rounded product.

      Conversely, the iPhone 17e adheres to a similar philosophy as a new entry-level iPhone, yet it does not inspire affection in the same manner. With the same $599 price, buyers receive a faster A19 chip, MagSafe support, and a starting storage of 256GB. These are meaningful upgrades, and I have previously noted that Apple has successfully addressed some of the “budget iPhone” stigma. However, the MacBook Neo resonated with me in a way the iPhone 17e did not: Apple has managed to make its most affordable Mac feel generous, while its least expensive iPhone still seems to be a calculated compromise.

      Apple’s inexpensive Mac exudes a sense of generosity that the 17e lacks.

      This realization strikes at the core of the matter. The MacBook Neo, despite its imperfections, genuinely feels like a part of the Mac family. It does not merely offer reluctant entry into the ecosystem. The Neo appears designed to excel in its category, featuring a premium aluminum casing, a robust display, a silent fanless design, and a clear target audience of students, families, and first-time Mac buyers.

      Consumers are responding positively, with even Apple surprised by the demand, prompting the brand to reportedly expedite unit production. The iPhone 17e isn't inherently a bad phone; it simply feels like Apple’s interpretation of “just enough.” Yes, it has the A19 chip, MagSafe support (finally), and increased storage. However, it still embodies the familiar “e” essence, characterized by a single rear camera, a notch instead of Dynamic Island, and an impression of, “you can have the iPhone experience, but not too much of it.”

      When compared to the iPhone 17, the absence of ProMotion makes the iPhone 17e feel like the sole “old-gen” smartphone at this price point—and the single rear camera does not help its case. The Google Pixel 10a is noticeably closer to the standard Pixel 10 in this respect. Its display is smoother, and while the camera sensors are small, they remain versatile. However, with the 17e, you sacrifice performance in both areas.

      How Apple’s Neo captivated the laptop market

      Apple

      The AI memory crisis has resulted in increased laptop prices across the board, and Arm laptops, which were expected to rival Apple in price-to-performance, are now encroaching on MacBook Air and MacBook Pro pricing instead. This trend further diminishes the value of the Windows ecosystem. Similar price increases have affected the smartphone market, with numerous Android competitors aligning their prices with the iPhone. Consequently, while the MacBook Neo has successfully established its niche, the 17e appears to be lagging behind.

      This forms the basis of my argument: the MacBook Neo shifts the conversation in the current market landscape, while the iPhone 17e merely manages to exist within it.

      The contrast is even more pronounced when reflecting on the playful spirit Apple once infused into its entry-level iPhones. A prime example is the iPhone 5c’s resurgence, which benefited from a retro charm that eschewed seriousness for vibrant colors. The MacBook Neo resurrects some of that spirit, whereas the iPhone 17e seems to exemplify Apple’s hesitation to imbue its entry-level phone with a distinct personality.

      Apple inadvertently highlighted areas where it still needs improvement.

      The iPhone 17e is not a failed product. It is an upgrade over its predecessor and a solid choice for the right buyer. However, the MacBook Neo illustrates Apple’s genuine commitment to entry-level devices, making it feel thrilling, thoughtful, and almost groundbreaking. It achieved this with a laptop rather than in the category where it primarily excels.

      Apple’s most affordable computer now stands out as one of the best-value products in its lineup, while its least expensive new iPhone still feels like a purchase made for the sake of having an iPhone, rather than reflecting the company’s success in achieving budget-friendly value. For a business built on the iPhone, this is a significant oversight.