Apple May Ditch 256GB MacBook Neo Model to Fight Rising Chip Costs

Apple is reportedly considering ditching its base 256GB MacBook Neo model as DRAM costs continue to climb.

In his latest Culpium newsletter, Bloomberg‘s Tim Culpan explains that by cutting out the 256GB MacBook Neo, Apple would effectively raise the entry price for customers as a means to combat inflated costs. In Canada, the 256GB model currently costs $799. The 512GB option is priced at $999, giving a margin of $200 for Apple to leverage.

Culpan cites manufacturing as the pressure behind MacBook Neo’s pricing. Currently, ordering a MacBook Neo results in a two-to-three-week turnaround for fulfillment. Apple has seen stronger-than-expected demand for the entry-level MacBook. It’s claimed that the company has increased production capacity with its supply chain partners to 10 million units. This is effectively double the original five to six million units.

A major issue that has arisen from increased production is the need for more A18 Pro chips, which power the MacBook Neo. Apple has had to ask its long-time supplier TSMC to order more chips, the same processors as the iPhone 16 Pro. Unfortunately, many were already in use during the early demand period, and TSMC is said to have limited 3nm capacity.

Recently, Apple dropped the 256GB Mac mini model as a means of combatting the same pressures. By doing so, the starting price of the device has effectively risen from $799 to $1,099. Recently, Apple CEO Tim Cook said, “We think, looking forward, that the ‌Mac mini‌ and ‌Mac Studio‌ may take several months to reach supply-demand balance.”

Culpan doesn’t go so far as to say Apple will drop the $799 MacBook Neo model. Though he predicts that if the company does, new colour options may be released for the current generation.