Apple faces potential removal of $599 MacBook Neo as component costs rise
Despite a production target of 10 million units, a global RAM shortage and the need for new A18 Pro chips threaten to erase the entry-level configuration.
Apple is facing potential adjustments to its MacBook Neo line as a global shortage of memory modules drives up production costs. According to analyst Tim Culpan, the company may discontinue the $599 base model configuration, a move that would leave only the $699 version with 512GB of storage available to customers. This potential shift mirrors recent strategic decisions by Apple to remove entry-level RAM options for the Mac mini and Mac Studio following similar supply constraints.
The decision comes despite the MacBook Neo launching to significant demand, with orders currently facing a two-to-three-week wait time on Apple's website. To meet this high demand, Apple has reportedly doubled its production plans for the device to a target of 10 million units, a significant increase from the initial 5 to 6 million forecast. However, scaling production presents new financial hurdles that the initial batch did not face.
The first wave of MacBook Neos utilised surplus A18 Pro chips that were leftover from the iPhone 16 Pro launch. For the second production batch, Apple will be required to order new A18 Pro chips rather than relying on existing inventory. Combined with the scarcity and rising cost of RAM components, the expense of manufacturing this second batch is expected to be substantially higher than the first.
Analyst Culpan indicates that these escalating component costs are likely to be passed on to consumers, potentially resulting in price increases for the device. This dynamic creates a difficult trade-off for the company; while the initial success of the Neo drove a massive production ramp-up, the supply chain realities now threaten to alter the product's affordability and configuration options.
The report relies on analyst speculation regarding Apple's internal supply chain decisions, and the company has not issued an official confirmation of these changes. It remains unclear whether the removal of the $599 model is a permanent strategic pivot or a temporary measure to manage short-term costs. Furthermore, the extent to which Apple will absorb these increased expenses versus passing them directly to buyers remains unconfirmed.
