ASUS says the MacBook Neo is a "shock" to the Windows PC ecosystem. "In the past, Apple's pricing situation has always been high, so for them to release a very budget-friendly product, this is obviously a shock to the entire industry," said ASUS co-CEO S.Y. Hsu in a Tuesday earnings call. While he expects PC makers to respond, rising AI-driven memory shortages could push hardware prices higher across the industry. PCMag reports: Hsu said he believes all the PC players -- including Microsoft, Intel, and AMD -- take the MacBook Neo threat seriously. "In fact, in the entire PC ecosystem, there have been a lot of discussions about how to compete with this product," he added, given that rumors about the MacBook Neo have been making the rounds for at least a year. Despite the competitive threat, Hsu argued that the MacBook Neo could have limited appeal. He pointed to the laptop's 8GB of "unified memory," or what amounts to its RAM, and how customers can't upgrade it.

He also described the MacBook Neo as a "content consumption" device, similar to an iPad. "This is different from the use case of a mainstream notebook," which can handle more compute-intensive tasks, Hsu said. "How big of an impact [the MacBook Neo] will have on the PC industry will still require some time for us to observe," Hsu said while suggesting it might not gain traction among Windows PC users due to software differences. "Of course, the entire Windows PC ecosystem will push out products to compete against Apple," he added.

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