- 0-20%: Unlikely - Lacks credible sources
- 21-40%: Questionable - Some concerns remain
- 41-60%: Plausible - Reasonable evidence
- 61-80%: Probable - Strong evidence
- 81-100%: Highly Likely - Multiple reliable sources
55%
Plausible
One of the ways that enabled Apple to get to that $599 price point for the MacBook Neo was using binned, or leftover A18 Pro chipsets, which feature a 5-core GPU instead of the 6-core configuration used on the iPhone 16 Pro and iPhone 16 Pro Max. With its attractive entry-level positioning, the new portable Mac would undoubtedly be picking up steam, just as long as Apple has the available parts, which, according to the latest report, it doesn’t. Now, the technology giant is stuck tackling a conundrum: ask its suppliers to resume production or stick with the current shipment tally and compromise future profits.
Restarting A18 Pro production for the MacBook Neo would be costlier due to TSMC operating at maximum capacity, forcing Apple to raise the price of the notebook as a consequence
As DRAM chips and aluminum costs begin spiraling out of control, Apple is one of the few companies that can maintain healthier prices of its products thanks to a diversified income stream. Unfortunately, even the Cupertino firm’s mettle is being challenged, particularly after the MacBook Neo’s release, as Culpium reports that the company is in talks with suppliers to either boost the production of its affordable and downright popular Mac, or let inventory run out of parts, leaving the current MacBook Neo shipment tally as it is.
Apple is currently juggling Quanta’s and Foxconn’s facilities in Vietnam and China, respectively, with its initial plan being to mass produce between 5 and 6 million MacBook Neo units. Assuming Apple halts production, it will be leaving free money on the table, but if it asks suppliers to proceed, it has no more A18 Pro chipsets to work with. Now, despite being one of TSMC’s most lucrative customers, the semiconductor won’t just halt production of its 3nm chips for another customer in favor of the iPhone maker, nor will it offer any discounts.
In short, Apple will be paying the full price of each new A18 Pro unit coming out of TSMC’s factory, pretty much denting the MacBook Neo’s margins. The worst part about this deal is that it cannot reduce the SoC’s price by utilizing defective A18 Pro models. Instead, it will need to pay the full figure of the chipset, then disable that one GPU core so that all MacBook Neo models are made equal. So far, Apple is paying a hefty premium for DRAM chips to starve its competition, but it will mean little if it’s making next to nothing on MacBook Neo sales.
What options does Apple have?
One alternative discussed by Culpium is to completely remove the base model with the 256GB SSD, leaving just the 512GB version available for sale, which costs $699 and comes with Touch ID support. Taking this approach would eliminate Apple’s margin problems, but force customers to spend a little extra. Another way is to resurrect the (PRODUCT)RED range, sell it at a higher price, and bundle some extra iCloud storage to make the deal sweeter.
Sadly, we don’t see Apple discontinuing any version, leaving the company with only the difficult path; ordering more A18 Pro chipset shipments from TSMC. How fruitful this decision will be is anyone’s guess, but if you don’t want to be those customers who are scouring for a MacBook Neo, we suggest grabbing the 256GB SSD version from Amazon for $599, with the 512GB variant going for $689.99.
News Source: Culpium
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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