Apple Inc (NASDAQ:AAPL, XETRA:APC) is positioning itself to capture a broader segment of the personal computer market with its newly launched MacBook Neo, according to Bank of America analysts.
The investment bank maintains a ‘Buy’ rating on Apple, with a price target of $320, implying upside from current levels of about $259.
The MacBook Neo represents Apple’s first concerted effort to target lower-end notebook consumers, where the company currently holds less than 1% of share of units today, the analysts noted.
Bank of America estimates the total addressable market (TAM) for Neo in calendar year 2026 at $32 billion, or 64 million units. “If Apple can gain 10% share of TAM this equals $0.03 of additional EPS,” they added.
The Neo is priced significantly lower than previous MacBook models, with education and base models starting at $499 and higher-tier options at $699, compared with the first-generation MacBook at $1,099 and the second generation at $1,299. According to Bank of America, this pricing strategy could attract first-time Mac buyers and create a “distinct customer base relative to the Air and Pro models.”
The note also highlights potential benefits for Apple’s broader ecosystem. With an iPhone installed base of approximately 1.5 billion units, far exceeding the Mac installed base of roughly 260 million units, the MacBook Neo could increase engagement across Apple services. “Neo driving increased stickiness of current Apple customers” could translate into higher long-term service usage, the analysts wrote.
Despite the new product launch, the bank did not adjust its earnings estimates or price target, keeping the latter at $320 based on a projected calendar 2027 EPS of $9.94.
Bank of America cited multiple catalysts for its ‘Buy’ rating, including AI integration, the launch of foldable devices, and “strong capital returns.”