Education customers can buy a Macbook Air for $899 or a Mac Mini for $649 that run entry-level workloads every bit as well as the Mac Studios and Macbook Pros costing thousands more. You only get graphics, ports, screens, and multi-core performance at the higher price points. $200 more gets you 16gb if memory is an issue.
It's really difficult to buy a Windows laptop at that has anywhere near the performance with a screen like that in a small, completely silent package. I wouldn't discount AppleCare service at the mall and working seamlessly with the phone in their pocket either. To the extent that customers adjust their minimum expectations up (and that includes color, which will come in the new Macbook Air), neither market share or margins is going to be an issue.
also, margins are a blend. The memory/storage/warranty upgrades are north of 80%-90% margin and many customers take them. The base offerings from Apple are a screaming value now that they have the performance. And they work for a lot of people.
When people mention "low end" and SE Apple products, it doesn't translate to the Mac.
Entry level truly means what it says - the model you enter the product line.
Sometimes that's the cheapest product, but not always.
The iPad is entry level because it shares a charging cable with the iPhone. 0 barrier to entry as an existing iPhone customer.
The White MacBook used to be the entry level mac because of the material and its durability. Ok for news reporters and students, lighter than a 15" macbook pro (remember there wasn't a 13" MBP until 2009), and in the age of the iPod - it was visually an entry into Apple if all you owned was a white iPod.
This was also the philosophy with the 5C. They thought customers would see it as more durable because of the plastic...
I agree - there isn't an entry level mac laptop right now.
My prediction: iMac colored 12" MacBooks. They're easy to swallow visually, they might be 999, and might even include an SD card slot. So useful, fun looking, small, and light. Maybe they'll advertise break resistant glass or have differently designed feet than the current MBPs.
I'd expect them to sport an M1 and release right around the time the M2 Pro is coming out in a 15" MacBook Air.