MacBook Neo: Demand exceeds Apple's supply Apfelpatient

The MacBook Neo is selling better than expected – but the supply of A18 Pro chips is running low. Apple is facing a supply chain dilemma with several possible solutions.

Since its unveiling in March, the MacBook Neo has been one of the most talked-about Apple products of the year. With a starting price of €699, Apple targeted a new customer base – and apparently generated more demand than anticipated. According to renowned analyst Tim Culpan, Apple is running out of the A18 Pro chips that power the MacBook Neo. What began as a clever recycling model is now becoming a logistical challenge.

The business model behind the MacBook Neo was unusual from the start: Apple used rejected A18 Pro chips that had been classified as slightly defective during the production of the iPhone 16 Pro. Chips with a non-functional GPU core—five instead of six—were set aside and used in the MacBook Neo. This practice, known in the industry as "binning," allowed Apple to offer a low entry price, as the chips were essentially leftover stock.

What happens now

According to Culpan, Apple had originally planned to produce around six million MacBook Neos – enough to use up the existing stock of discontinued A18 Pro chips. Demand now apparently far exceeds this amount. Apple is in talks with suppliers about possible solutions.

The options under consideration each involve compromises. Apple could commission TSMC to resume A18 Pro production, but would have to pay a premium. The resulting higher unit costs could force Apple to discontinue the €699 base model and offer only the €799 variant.

Alternatively, Apple could accelerate the development of the MacBook Neo 2, which was originally planned for mid-2027. This model is expected to use A19 Pro chips – the leftover chips from the iPhone 17 Pro production run. However, an earlier launch would be logistically challenging.

The third option would be the least attractive: Apple simply lets the MacBook Neo's availability expire and waits until the next generation. This would mean deliberately leaving existing demand unmet – a scenario that Apple, based on past experience, wants to avoid.

MacBook Neo: A good problem

From Apple's perspective, this is a luxury problem. The MacBook Neo has proven to be what many expected: an affordable entry into the Mac world that appeals to a new customer base. Apple is likely to highlight this success in its next quarterly report. A comparison between the MacBook Neo and the MacBook Air shows that both devices serve different target groups – the Neo is apparently cannibalizing the Air less than feared.

At the same time, the scarcity reveals the limitations of Apple's recycling strategy. A product based on discarded chips cannot be scaled indefinitely. For the second generation, Apple will have to ensure a more sustainable chip supply – whether through its own production planning at TSMC or by factoring in a chip inventory from the outset. (Image: Apple)