An analyst’s report shows Apple’s new MacBook Neo is even more affordable than it first appears. The total cost of ownership is about half that of comparable Windows PCs.
It may sound counterintuitive at first — how can a $599 Mac be half the cost of a $599 PC? — but the analyst showed that the typical lifespan of a Mac is so much longer than that of a Windows PC that the Apple model costs much less over time.
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MacBook Neo real cost makes ‘budget PCs’ look overpriced
The MacBook Neo made headlines for its $599 price. It’s the most affordable notebook Apple has ever released by a wide margin. And despite the low cost, it’s not cheap junk. Reviews praise the build quality and the performance.
And now Horace Dediu, founder and analyst at Asymco, published a report that points out that the computer is an even better deal when the length of time it’s likely to be used is factored in.
Data proves Macs last twice as long as Windows PCs
Dediu used industry data to show that Macs continue in use for about twice as long as Windows PCs. So someone who buys a PC today will need a replacement long before someone who purchased a Mac at the same time. The Mac won’t wear out until about the time the other user’s second PC needs replacing.
The analyst began backing up that assertion by calculating approximately how long Macs are typically used. He then compared that to a typical lifespan of a Windows PC.
“Apple’s sales of about 24 million Macs for a base of 260 million users implies a life span for Macs of nearly 11 years,” noted Dediu. “However, all the other PCs sold add up to 238 million for a user base of 1.2 billion. That means the life span for the non-Mac PC is only 5 years.”
If that calculation went by a bit too quickly, the analyst’s argument is that because Apple makes about 25 million Macs a year, and there are still 260 million Macs in use, then it’s taken the company roughly 11 years to produce and sell all those computers. So millions of those Macs have to be close to 11 years old. If they wore out faster, then Apple would need to make a lot more per year for there to still be 260 million in use.
In contrast, Windows PC makers produce around 238 million computers, but with 1.2 billion of those still in use, the typical replacement time is approximately five years.
Computers that last longer cost less to own
Dediu then calculated the cost over time of the macOS device by dividing the price of Apple’s entry-level computer by the number of years Macs are typically used.
“With the MacBook Neo, the potential for a 10 year life for a $500 laptop puts the Neo price at $50/yr or 14c/day,” said the analyst.
Next, he did the same calculation for rival computers.
“Based on data for 2025, the average selling price of a new Windows PC is estimated to be $600 to $900 for consumer models. At $700 for a lifespan of 5 years makes the PC cost $140/yr or 38c/day,” said Dediu.
Using that same process, someone who thinks they are saving money by getting a $399 Windows PC will pay $80 per year or 22 cents a day — significantly more than the MacBook Neo costs over time.
Consumers, think about long-term savings
Of course, for the analyst’s argument to be persuasive, consumers must focus on long-term value rather than sticker price. If Apple can convince buyers to think in terms of annual cost rather than upfront cost, it would reshape how affordability is defined in personal computers.
That would bring a dramatic shift to the PC market. Windows device manufacturers have always relied on aggressive pricing at the low end to maintain volume. But here comes the MacBook Neo, which offers great performance and is a better long-term value.
The MacBook Neo is Apple’s entry-level laptop. It boasts Apple’s signature all-day battery life and ease of use. It can swim through web browsing, document editing and other basic tasks. But if you want higher specs than its 8GB memory or the maximum 512GB storage, the MacBook Air is a better choice.
- 16-hour battery life
- Bright, fun colors
- Thin and light design
- No MagSafe charging
- USB 3 and USB 2 ports
- No support for high-resolution displays
Ed Hardy has been writing full-time about tech for 25 years, and using it for much longer than that. His intro to Apple was a Macintosh SE/30 (which he still has), but now he uses a 13-inch iPad Pro as his primary computer.
That’s because he’s a “tablet first” type of guy. Rather than use a Macbook, he connects a keyboard case to the iPad. And instead of a desktop Mac, he connects his tablet to a 27-inch display and full-size keyboard. (So don’t try to tell him that everyone has to use a Mac to be productive.)
Before coming to Cult of Mac, Ed wrote for NotebookReview, TabletPCReview and Brighthand, as well as other sites.
One response to “MacBook Neo costs far less than entry-level PCs over time”
This is misleading- the NEO’s about on par with M1 Air which is 5 years old so by the time the M1’s done so will the Neo albeit the hardware should still hold up for simpler tasks. I do see the value of a half-priced, half-life option for travelers and intros to Apple but with how often Airs get discounted with sales that’s still the best buck for longevity.