Steven Sinofsky, who ran the Windows division at Microsoft, picked up a MacBook Neo on launch day and wrote a long, reflective piece about it on his Substack. He called it “a paradigm shifting computer”. Coming from the guy who shipped Windows 8 and Surface, that’s not faint praise.
MKBHD went further in his review, calling the Neo “potentially Apple’s most disruptive product in the last 10+ years.” He said it should make the entire Windows and Chromebook laptop industry nervous. I think he’s right, but maybe not for the reasons most people are talking about.
Everyone’s focused on the specs. The A18 Pro chip. The $599 price. The aluminum build. Those are all real, and they all matter. But I think the deeper story is structural, and it’s one that PC makers can’t fix with a better chip or a thinner bezel.
Think about what it takes to build and sell a $599 PC laptop. You’ve got Microsoft, who needs to get paid for Windows. You’ve got the chip maker, whether that’s Intel, AMD, or Qualcomm. You’ve got the hardware manufacturer, Dell or HP or Lenovo. And you’ve got the retail channel. Every one of those companies needs their cut. Every one of them has shareholders and quarterly targets and sales teams and marketing budgets. By the time the laptop reaches a customer at $599, the margins have been carved up so many times there’s barely anything left to put toward making the actual product better.
Apple doesn’t have that problem. They make the chip. They write the operating system. They design the hardware. They sell it through their own stores and website. One company, one margin, one set of decisions. When Apple prices the Neo at $599, they’re not splitting that revenue four ways. They’re keeping it, and they get to decide exactly how much of it goes back into making the product great.
Moreover, I’m not sure Apple even cares that much about the profit margin on the Neo itself. Every $599 MacBook Neo that lands in a college student’s backpack is a new Apple customer. That person is going to buy apps, subscribe to iCloud, maybe pick up AirPods. A few years later they’ll upgrade to a MacBook Air or a Pro. Apple has always been good at the long game, and the Neo might be the longest game they’ve ever played. Get people into the Apple world at $599 and let the lifetime value take care of itself.
Sinofsky’s piece was interesting to me for another reason. He spent a lot of it reflecting on Windows 8 and Surface RT, which tried to do something similar with ARM chips back in 2012. He’s honest about what went wrong. The hardware and software were ready, he says. What they couldn’t pull off was moving developers to a new, more efficient app model fast enough. People wanted the old Windows. Microsoft’s greatest strength, running everything forever, turned out to be the thing that held them back.
Apple took the opposite approach. They spent twenty years systematically moving developers to new frameworks, sunsetting old APIs, and refusing to let backward compatibility become a prison. When they switched to Apple Silicon, the apps were ready. When the Neo shipped with an A18 Pro, nobody complained that their software didn’t work. That’s not an accident.
So yes, there will be PC laptops at the same price as the Neo. There already are. But there won’t be comparable PC laptops at the same price. That’s the distinction. You can match the price or you can match the experience, but the economics of the PC industry make it nearly impossible to do both at once. Apple can, because they’re the only company that controls the entire stack from silicon to storefront.
There is also another question here. If Microsoft’s legacy support kept them from going to the next thing, what is in Apple’s DNA prohibiting it from going to the next thing?