Exec of laptop maker says Apple's budget MacBook Neo is a 'shock to the entire market'

• Apple's $599 MacBook Neo shocked lower-cost competitors like Asus.
• The MacBook Neo is priced $500 lower than the Air and features 8 gigabytes of memory.
• Asus called out MacBook Neo's limitations, likening it more to a tablet for content consumption.

Apple is entering unfamiliar territory with a $599 MacBook, and competitors are noticing.

The tech giant is known for high price tags on pretty much all of its gadgets, but every once and while it offers an affordable option for those who want a lower price point. Such is the case with the new MacBook Neo it revealed in March.

Starting at $599, the MacBook Neo sells for $500 less than an entry-level MacBook Air. It costs less than an iPhone 17, and it runs on an A18 Pro chip.

The drop is making waves in the laptop business as Apple enters a new price bracket. Taiwanese PC maker Asus fielded questions about the impact of the affordable MacBook Neo during its earnings call on Tuesday.

"Given Apple's historically very premium pricing, launching such an affordable product is certainly a shock to the entire market," Asus financial chief Nick Wu said, according to a transcript translated to English that was published by Seeking Alpha.

However, he said Asus observed "limitations" in the MacBook Neo, such as its 8 GB of memory, which may limit certain applications. He said the device seems to be more focused on content consumption.

"This differs somewhat from mainstream notebook usage scenarios," Wu said. "The Neo feels more like a tablet, because tablets are mostly for content consumption."

By comparison, the lowest-memory laptop available on the Asus website on Wednesday was the ZenBook 14 with 16 GB of memory.

Apple has positioned the new laptop as an accessible product that aims to put the MacBook in more people's hands around the world. The introduction of a lower-cost laptop came alongside a round of price increases for higher-end MacBooks.

Still, Apple has officially entered a new, lower price lane — and its rivals are bound to take note.

Wu said all PC vendors are taking this "very seriously," and he expects rivals to launch their own products to compete with the MacBook Neo.

"The final market competition outcome is hard to predict," Wu said.