Nov 4 (Reuters) - Apple ( AAPL ) is preparing to launch

a budget Mac in the first half of next year, entering the

low-cost laptop market for the first time, Bloomberg News

reported on Tuesday.

The device, aimed to lure customers away from

Google's Chromebooks and entry-level Windows PCs, is

made for students, businesses and casual users who primarily

browse the web, work on documents or conduct light media

editing, Bloomberg reported, citing people familiar with the

matter.

Apple ( AAPL ) is also targeting would-be iPad buyers who might

prefer a traditional laptop instead.

The iPhone maker aims to sell the laptop, code-named J700,

well under $1,000 by using less-advanced components, the report

said. It is currently in active testing at Apple ( AAPL ) and in early

production with overseas suppliers.

Apple ( AAPL ) did not immediately respond to a Reuters request for

comment.

The cheapest Mac currently available is the M4 MacBook Air,

priced at $999, dropping to $899 with a student discount.

The laptop will have an iPhone processor and a lower-end LCD

display, with the screen coming in slightly below 13.6 inches,

the smallest of any current Mac, per the report.

It would be the first time that Apple ( AAPL ) has used an iPhone

processor in a Mac, rather than a chip designed specifically for

a computer, the report said. Internal tests have shown that the

smartphone chip can perform better than the Mac-optimized M1

used in laptops as recently as a few years ago.

Apple ( AAPL ) reported Mac sales of $8.73 billion in the fourth

quarter, compared with estimates of $8.59 billion. It forecast

holiday-quarter iPhone sales and overall revenue that surpassed

Wall Street expectations last month.