I've never been good at marketing, so, I'm not someone to ask about it. But, it did seem to me when Wintel was pushing it that the only time I saw these items used en masse was attached to the back of monitors in institutional settings. I think that a lot of people who need a system that inexpensive don't have a keyboard and monitor lying around to use it with, and, don't have an open desk space to put it on. So, the Neo as it is packaged today solves all those problems.
In the institutional case, maybe a small iMac to reduce cost and space? (The iMac as it is configured today is a higher-end system, with a fancier display and higher-end CPU at the bottom end.) If there was a market for it, you could repackage the Neo as an iMac.
Putting an A series CPU in an iMac would only knock maximum of 200-300 USD off the price of an iMac though, an A series powered iMac would still cost around $1k - come with 2 USB-C ports (let's be generous and have one of them be USB3 and the other USB2 like the MacBook Neo) and would have to drive a 4.5k display (probably the equivalent of 4 Neo screens).
And why not have a VESA mount kit to put a future Mini on the back of any monitor you choose?
If Apple need a revenue stream they could introduce an LTS version of macOS - long term support - which would look after ARM Macs that fall out of support of the main line Mac OS in the coming years. Currently Intel users could boot Linux or Boot Camp Windows but M1 era ARM Macs could be looking at the end of the line for support coming soon.
It wouldn't necessarily need to have the same major feature set of the mainline MacOS but would be nice to have a subset of features available in subsequent OSes going forward.
And to pay for the bug fixes you'd have to log into an AppleID which has an active Apple Creators Studio subscription (I'd suggest a higher end iCloud+ account but I already say that Creators Studio needs to come with iCloud storage anyway).
It's the sort of thing which might soften the blow for people who have invested in high spec Mac Studios or Mac Pros or MacBook Pros although our friends in the Hackintosh community might suddenly wake up at the prospect of a new challenge.
And more importantly Apple wouldn't then need to try and cater at the super low end if people can keep using their older ARM hardware for a bit longer.
An alternative is for the LTS version of macOS software to actually be a super enhanced tvOS Pro which would allow users to repurpose their old Mx era stuff as a very powerful games platform - let's say you'd have to have an active Apple Arcade subscription to use it. But that's something for another section of this forum I'd guess.
Or if Apple feel like they want to walk back into a certain market - why not release an A series CPU in box that can take SATA storage and be a WiFi 7 access point with 2x 10Gig ethernet ports for duty as a router? Yes, the return of Time Capsule! This is mainly because I keep reading reviews of hugely expensive routers from the usual suspects which have reviewer complaints about not enough RAM or horsepower. StorageOS for the win?
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