I believe that a $599-799 laptop would cannibalize sales too much for the Macbook line and I do believe they'd eat into their own margins by making this a mainstream product.
There are already $600 M1 MBAs being sold via Walmart (and presumably Walmart are still getting a slice of that) so this "cannibalisation" is already a fact of life. Better to cannibalize your own sales than let Chromebooks and cheap PC laptops do it for you.
1. I'm sure Apple have a spreadsheet modelling the good old "is it more profitable to sell
n units at $
x profit or
m units at $
y profit question.
2. Someone sees a MBA at $1000 in a shop window (literally or, figuratively, online) and walks on by because they don't theink they can afford a Mac. They see a $600 MBA and walk in - a golden opportunity to upsell them to the $1000 model.
3. Even if they do get the $600 model, Apple now have another customer to target for accessories and services, iPhones, iPads, watches and - a year or two down the line - a new Mac.
I recall this was part of the reasoning behind the launch of the original Mac Mini - to avoid "sticker shock". Once they're seriously looking at a "cheap" Mac they're susceptible to being upsold.
I think Apple have had a nice spell where they could just rely on Macs and iPhones selling themselves. Now, between the rising cost of living and diminishing returns from advancing technology (Macs and phones passed "good enough for most mass-market uses" a while back) they might have to re-discover the art of
selling.
I've got a feeling this thing won't be available for general purpose and will be restricted to bulk purchases by schools and companies that are using Chromebooks
Possibly - that's certainly part of the target market and ISTR they did it before with the eMac, and possibly with the M1 "Walmart" Air. Or maybe it will be on the Apple Store at a not-too-attractive price, but widely discounted in big stores and box-shifters. Still, I think Apple are a *long* way from a $600 MacBook becoming a "loss leader".
The MacBook Air then becomes the prosumer option with a higher starting price, not the budget option.
This is an "eye of the beholder" thing. If you see the MBA as a
MacBook then it's entry-level. If you see it as a
laptop computer then it's already the "prosumer option". I know it's hard to believe, but the majority of laptop users in this world somehow manage to use PCs and are put off buying Macs by the price. If Apple only worry about selling Macs to existing Mac converts then they will see a slow decline in users...