According to a report from tech columnist Tim Culpan, Apple is currently in talks with suppliers to boost production of its new entry-level MacBook Neo notebook, but the company is facing a “massive dilemma” in how to actually achieve that growth.
Launched just last month as part of the company’s 50th-anniversary celebrations, the CAD $699 device was designed to bring the Mac experience to a broader audience. However, that popularity is now creating a significant headache for Apple’s supply chain managers.
At the heart of the issue is the processor inside the MacBook Neo. To hit the aggressive price point, Apple utilized a specific version of the A18 Pro chip. During the manufacturing process for the iPhone 16 Pro, some chips are produced with a faulty GPU core. Rather than discarding these, Apple “bins” them, disabling the faulty core to create a 5-core GPU variant.
These chips are essentially fre” for Apple because they are salvaged from what would otherwise be waste. However, because the MacBook Neo is selling much faster than anticipated, Apple is reportedly on the verge of running out of these salvaged chips.
To keep production moving, Apple may have to pay a premium to manufacture brand-new A18 Pro chips specifically for the Neo and then intentionally disable a working core to maintain spec consistency across the lineup. This move would significantly eat into the profit margins of an already low-cost device.
To address the surge in demand, Apple is reportedly looking to diversify its assembly beyond China, with increased focus on its facilities in Vietnam. While moving production can help with assembly speed, it doesn’t solve the core silicon shortage.
Rumours suggest that Apple is considering several options to manage the situation. One possibility is discontinuing the base model with 256GB of storage earlier than planned, leaving the 512GB model as the sole entry point. However, this seems unlikely given how heavily Apple has marketed the Neo’s affordability for students and families.
Another path involves moving up the release of the next-generation MacBook Neo, which is expected to feature the A19 Pro chip and a jump to 12GB of RAM.
Want to see more of our stories on Google?
P.S. Want to keep this site truly independent? Support us by buying us a beer, treating us to a coffee, or shopping through Amazon here. Links in this post are affiliate links, so we earn a tiny commission at no charge to you. Thanks for supporting independent Canadian media!
