Apple's latest product launch week culminated in the $599 MacBook Neo, the company's most affordable laptop to date. While the specs are modest, early impressions suggest the device punches above its weight class in terms of user experience and value. Devindra Hardawar and Engadget Deputy Editor Nathan Ingraham explore whether this budget-friendly machine could be Apple's sleeper hit of 2025.

Beyond the Neo, Apple refreshed its entire laptop lineup with M5 chips across the MacBook Air, MacBook Pro M5, M5 Pro, and M5 Max models. The new iPad Air M4 and iPhone 17e also made appearances, though the podcast questions whether the iPad Air remains compelling in an increasingly crowded tablet market. These incremental upgrades continue Apple's strategy of refining existing product lines rather than pursuing radical innovation.

The episode also delves into the controversial relationship between AI companies and military contracts, featuring author Spencer Ackerman discussing Anthropic's recent ban from Department of Defense projects. Despite the ban, the DoD reportedly continued using Claude for operations against Iran, raising questions about oversight and accountability in the rapidly evolving AI sector.