Apple doubles planned MacBook Neo production – report claims
Increased MacBook Neo production could result in higher prices
Apple has reportedly told its suppliers to prepare for a doubling of MacBook Neo production capacity. Instead of a planned run of 5-6 million units, Apple reportedly plans to now build 10 million units. Demand for the MacBook Neo greatly exceeded expectations, and Apple wants to take advantage of this demand.
Apple’s MacBook Neo is available with 8GB of unified memory and storage options of 256 GB and 512 GB. These models cost £599 and £699 respectively. Both models have an Apple A18 Pro SoC, the same chip as the iPhone 16 Pro. However, the MacBook Neo includes a lower-binned version of this chip with a 5-core CPU. The iPhone 16 Pro features a 6-core GPU.
Until now, the MacBook Neo has used rejected A18 Pro chips that couldn’t be used on iPhone 16 Pro devices. Since these chips were unused, they are effectively free for Apple. With Apple’s increased production plans, it needs to manufacture new A18 Pro CPUs, which will greatly increase its production costs. This will lower Apple’s margins.
Apple currently offers the Neo in 256GB ($599) and 512GB ($699) versions with four colors apiece. A month ago I suggested that to deal with the higher cost and lower margins of a new batch, Apple may kill the cheaper version and only offer the 512GB variant. It recently followed that strategy with the Mac Mini, pulling the $599 256GB model from sale leaving only the $799 512GB version available.
Alternatively, Apple might add some new colors to the Neo lineup to soften the impact of higher prices and boost enthusiasm for the device.
– Tim Culpan
Apple may raise MacBook Neo pricing to maintain high margins
It has been speculated that Apple may eliminate its cheaper 256GB storage option for its MacBook Neo. This would raise Apple’s margins and make its increase in Neo production more worthwhile. Tim Culpan has suggested that Apple may introduce new colour options for the device to soften the impact of this price hike.
If Apple does eliminate the Neo’s 256GB option, it would be following an existing trend within Apple. Note that Apple removed its 256GB Mac Mini from sale last week, effectively raising the device’s baseline pricing from £599 to £799. Doing the same for the MacBook Neo is far from being an unexpected move.
You can join the discussion on Apple’s plans to increase MacBook Neo production on the OC3D Forums.
