Apple is running into an unexpected supply issue with the MacBook Neo as demand continues to surge. The company’s most affordable Mac has quickly turned into one of its most popular releases, but its success is now putting pressure on a key component, the A18 Pro chip.
The MacBook Neo relies on a unique strategy to keep its starting price low. Instead of using freshly manufactured chips, Apple uses binned A18 Pro units originally produced for the iPhone 16 Pro. These chips have one disabled GPU core, resulting in a 5-core GPU, but are otherwise fully functional. This allows Apple to reuse chips that would have otherwise gone unused and significantly reduce costs.
That strategy works only as long as supply lasts. Apple did not produce a dedicated batch of A18 Pro chips for the MacBook Neo, which means availability depends entirely on leftover inventory from iPhone production. With demand now exceeding expectations, that inventory is reportedly running low.
Apple initially planned to manufacture around five to six million MacBook Neo units. However, early sales momentum has outpaced those estimates. Tim Cook recently said the Mac saw its strongest launch week ever among first-time buyers, with the MacBook Neo driving much of that growth.
This puts Apple in a difficult position. One option is to restart A18 Pro production through TSMC, but that comes at a higher cost since 3nm capacity is already heavily allocated. Even if Apple moves forward, it would still need to disable a GPU core on these chips to match the existing configuration, further impacting margins.
Another path is reallocating chip supply from other products, though that would also increase costs and affect other parts of Apple’s lineup. The company could also rethink its pricing strategy by removing the $599 base model and focusing on higher storage configurations, but that risks weakening the product’s main appeal.
There is also the possibility of accelerating the next-generation MacBook Neo with a newer chip, such as a binned A19 Pro. However, this depends on future yields and supply, and may not be viable in the short term.
For now, Apple may choose to accept lower margins to keep up with demand. The MacBook Neo appears to be doing more than just driving revenue. It is bringing new users into the Mac ecosystem, which makes maintaining availability a priority.
Shipping estimates already reflect the strain, with delivery timelines stretching to a few weeks across multiple regions. If demand continues at this pace, supply constraints could become more visible in the near term.
(via Tim Culpan)
