Apple Launches M5 MacBook Air and a New Budget Model with iPhone Chip

Apple unveils a premium M5 MacBook Air with enhanced AI and a new budget model using an iPhone chip for affordability.

Mar 3, 2026
3 min read
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Apple Launches M5 MacBook Air and a New Budget Model with iPhone Chip

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Apple's laptop strategy splits in two directions this week, with a refreshed premium MacBook Air gaining M5 power while a new budget model reportedly trades features for affordability.

The 2026 MacBook Air now ships with Apple's latest M5 processor, delivering up to four times faster AI performance than the previous M4 model according to company claims. Base storage doubles to 512GB across both 13-inch and 15-inch configurations, while unified memory bandwidth increases 28 percent to 153GB/s.

Each GPU core includes a dedicated Neural Accelerator for enhanced on-device AI workloads. The laptop retains its fanless aluminum chassis but adds Wi-Fi 7 and Bluetooth 6 support through Apple's N1 wireless chip.

Simultaneously, Apple prepares to unveil what could become its cheapest MacBook ever. The budget model reportedly uses an iPhone 16 Pro's A18 Pro processor instead of M-series silicon, matching M1 performance in synthetic benchmarks according to early testing.

To hit lower price points between $599 and $799, the new laptop makes eight key compromises according to leaks from internal macOS Tahoe beta files. Display brightness falls below the MacBook Air's 500 nits maximum, True Tone color adjustment disappears entirely, and storage options top out at 512GB without higher capacity tiers.

Flash storage speeds drop due to single NAND chip configurations, charging lacks fast-charge capability, and keyboards omit backlighting. High-impedance headphone support disappears from this model despite appearing on Macs since 2021.

Wireless connectivity reportedly shifts from Apple's custom N1 chip to cheaper MediaTek hardware for Wi-Fi and Bluetooth. The laptop may launch in multiple colors including yellow, green, blue and pink reminiscent of early iBook designs.

Media hands-on sessions scheduled for Wednesday March 4 in New York, London and Shanghai will provide first impressions without a traditional keynote stream.

Both announcements arrive as Apple attempts to defend premium laptop territory while competing against Chromebooks in education markets. The A18 Pro-powered model targets users willing to accept compromises for several hundred dollars in savings.

Early analysis suggests the budget MacBook could offer reasonable value if priced at $649 or below. The M5 MacBook Air starts at $1,099 for the 13-inch model and $1,299 for the 15-inch model, which would create a $300-$450 price separation from the budget model's estimated $599-$799 range.

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