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I’m guessing the intro-level MacBook will resemble the M1 MacBook Air rather than the 12” MacBook.
 
The current Air is already thinner than the 12" (0.44" vs 0.52") it just doesn't taper. One consideration is that miniaturisation is expensive, as are custom features like a terraced battery which underpinned the old MacBook offering a decent Mac experience, so I probably wouldn't expect the cheaper device to be the one to go there. Perhaps Apple will be able to shave a bit more size and weight off of future MBA models, but again, a bit of a ceiling with the relatively low price point they need to hit.
 
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The current Air is already thinner than the 12" (0.44" vs 0.52") it just doesn't taper. One consideration is that miniaturisation is expensive, as are custom features like a terraced battery which underpinned the old MacBook offering a decent Mac experience, so I probably wouldn't expect the cheaper device to be the one to go there. Perhaps Apple will be able to shave a bit more size and weight off of future MBA models, but again, a bit of a ceiling with the relatively low price point they need to hit.
The $350 iPad is way more powerful than the 12" Macbook and could easily be running MacOS. No reason they can't do small and cheap using slightly older hardware if they want to.
 
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I have had 2 Macbook Air 12".
First gen M Intel and my current 2017 Intel i5 which I dearly love.

It's my bedside laptop and travel companion - goes with me everywhere.

It would be nice to see and Apple Silicon 11.6" or 12" Macbook.
 
I loved mine, used it as a companion device to my MBP. It was the perfect size for travelling and was plenty fast enough as long as you didn't try to push it with graphics intensive stuff. The old 11 inch MBA's screen was just a bit too small for me, but the 12 inch was my perfect small form laptop and looked great too.
 
I loved mine, used it as a companion device to my MBP. It was the perfect size for travelling and was plenty fast enough as long as you didn't try to push it with graphics intensive stuff. The old 11 inch MBA's screen was just a bit too small for me, but the 12 inch was my perfect small form laptop and looked great too.
Still use my 12" MacBook 2015. Perfect for travel. May be tempted to buy if it is a 12" and light.
 
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I had a 12" Macbook, the portability was amazing. As I was disappointed the Intel CPU was so slow, an Apple Silicon re-boot would be very attractive. The problem is whether the 12" screen makes sense anymore, or whether anyone makes a suitable one anymore. A 13" would impose on the existing MacBook Air. A 11" maybe doesn't exist.
 
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