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Apple Doubles MacBook Neo Output as New A18 Pro Run Drives Up Costs

Higher chip and memory costs now threaten the Neo’s low entry price.

Overview

  • Apple, which analysts said Thursday asked suppliers to prepare capacity for about 10 million Neo units, is commissioning a fresh run of A18 Pro chips to meet demand.
  • Tim Cook said on last week’s earnings call that the laptop is supply constrained, and Apple’s site shows two to three week delivery windows in many regions.
  • Early Neos used down-binned A18 Pro chips with one GPU core disabled, but new production will mostly yield full-spec parts on TSMC’s tight 3nm lines that cost more.
  • Rising DRAM prices in recent weeks have pushed the Neo’s parts bill higher, adding pressure to margins on a product positioned at $599.
  • Reporting by Tim Culpan says Apple is weighing dropping the $599 256GB model or adding new colors, a shift that would raise the effective entry price for buyers.