The MacBook Neo made me realize that Apple still doesn’t know how to make a really cheap iPhone

Apple’s core business still revolves around the iPhone, with almost half of its revenue being brought in by these devices. But that’s why it feels strange that the company was able to build a high-end Apple laptop rather than an entry-level iPhone.

The MacBook Neo starts at $599 in the US, and buyers get an all-aluminum build, a 13-inch hi-res Liquid Retina display, Apple silicon, and all-day battery life. Apple is clear about what it has built. This is not a Pro machine with powerful M series processors. But despite various hardware limitations, it still feels like a complete product.

Meanwhile, the iPhone 17e has the same philosophy as the new entry-level iPhone, but it’s still hard to like in the same way. For the same $599 price tag, you get a faster A19 chip, MagSafe support, and 256GB of initial storage. That’s a decent development, and I’ve already written that Apple has finally fixed some of the “budget iPhone” vibe. But the MacBook Neo clicked for me: Apple managed to make its cheapest Mac feel generous, while its cheapest iPhone still felt like a carefully managed compromise.

Apple’s cheapest Mac still feels graceful in a way that the 17e doesn’t

This is the essence of epiphany. The MacBook Neo, for all its faults, still feels like it belongs in the Mac family. It’s not just grudgingly allowing people into the ecosystem. The Neo looked like it was built to win in its class. The company offers a premium aluminum shell, a solid display, a quiet fanless design, and a clear positioning for students, families, and first-time Mac buyers.

And people voted with their wallets, even Apple was surprised by the demand, causing the product to rush to get more units. The iPhone 17e isn’t an entirely bad phone. It seems to be Apple’s version of “enough”. Yes, it gets the A19, MagSafe support (finally), and more storage. But it still has the typical “e” power, with just one rear camera, a notch instead of Dynamic Island, and a “you can have the iPhone experience, but not much more” vibe.

Compared to the iPhone 17, the lack of ProMotion makes the iPhone 17e feel like the only “old generation” smartphone at this price—and the rear camera alone doesn’t do anything. The Google Pixel 10a is very close to the regular Pixel 10 in this regard. The display is smooth, and the camera sensors, although small, are still versatile. But in the case of 17e, you put down in both places.

How Apple’s Neo took the laptop world by storm

AI memory has driven up laptop prices across the board, and Arm laptops that were supposed to challenge Apple on price performance have gravitated toward the MacBook Air and MacBook Pro. All of this makes the Windows ecosystem look bad in terms of value. This price increase also extends to the smartphone market, with many Android competitors at similar iPhone prices. So while the MacBook Neo has successfully carved out its niche, the 17e has been left behind.

That’s also my main argument here, as the MacBook Neo changes the conversation in the current environment, while the iPhone 17e just survives it.

The difference feels even sharper when you look at the gaming capabilities Apple used to bring to entry-level iPhones. The return of the iPhone 5c is a good example of this, with part of the phone’s retro appeal being that it didn’t look serious or sterile. It came in bright and fun colors. The MacBook Neo brings back some of that power, while the iPhone 17e still feels like Apple is afraid to let its entry-level phone have personality.

Apple proved it wrong when it still has work to do

The iPhone 17e is by no means a failed product. It’s smarter than its predecessor and a solid choice for the right buyer. But the MacBook Neo is where Apple really commits to an entry-level device. It makes it sound exciting, thoughtful, and almost disturbing. It just does that with the laptop instead of the ruling device category.

Apple’s cheapest computer now looks to be one of the best value products in its lineup. Its new cheapest iPhone still feels like something you buy because you want an iPhone, not because the company has finally cracked the code on budget pricing. And for a company built on the iPhone, that’s a pretty big miss.