It's actually more like an iPhone 16 Pro runing MacOS in a laptop form factor. Apple basically rummaged through their parts box and pulled out a mobile CPU that'll deliver 50% more single core performance than what's in a high-end Chromebook with only 80% of the power draw. And Apple's got *massive* economies of scale on those parts, so they can afford to deliver a lot of bang for the buck.
The only place the Neo appears to falls short is in RAM, but this is *not* a power user machine, it's for basic office tasks and multimedia consumption. Realistically 8GB is plenty for many users.
In any case, the desktop isn't the center of most users's universe anymore; the switchboard of their life is their smartphone. This is a gateway drug to MacOS IOS integration, and eventually onto the upgrade treadmill. Users will switch seamlewssly between their iPhones and Neos all day long, with data on iCloud and iMusic etc., and when it comes time to upgrade their phone or their laptop, they won't be *stuck* exactly, but if they leave the reservation they lose a lot. But they certainly could upgrade to a *much nicer* Macbook....
It's no wonder the other laptop makers are sitting up and taking notice. Apple has set up a one way conversion ratchet for people tempted by a really nice and perfectly adequate entry level machine at an entry level price.Nobody else has the vertical integration -- chip foundries to device manufacturing, to software platform -- spanning desktop and phones that's needed to do this.