Apple has ordered a new A18 Pro run from TSMC and raised the production target for the MacBook Neo to ten million units. This ends the recycling model that enabled Apple to offer such a low entry price. Three options are now on the table – each with noticeable consequences for buyers.
Since its launch in March, the MacBook Neo has been one of the most discussed Apple products of the year – not least because its low starting price is based on an unusual trick: Apple used surplus A18 Pro chips from the iPhone 16 Pro production run. The fact that this supply has run out and Apple is looking for solutions has been a topic of discussion since April. Now, reports from supply chain analyst Tim Culpan are painting a clearer picture: Apple has decided to double production – and is simultaneously exploring several ways to offset the resulting increase in costs.
How significant is the production doubling really?
According to Culpan, Apple has instructed its suppliers to increase production capacity to approximately ten million MacBook Neos. The original target was five to six million units – meaning Apple is nearly doubling its planned volume. Quanta and Foxconn manufacture the device in Vietnam and China; current delivery times in the US and many other countries are two to three weeks across the entire product range.
To even reach the new production target, Apple needs fresh A18 Pro chips. TSMC manufactures these using the N3E process, and the original production run was at least two years ago. There's little room for a short-term increase: the 3-nanometer capacity is largely booked up with AI orders. A new run would therefore cost Apple twice – once through the standard price, and a second time through the usual surcharge for accelerated production.
Why unit costs are suddenly rising
The economic appeal of the MacBook Neo lay in its use of discarded chips. During the A18 Pro manufacturing process, chips with a single defective GPU core were a regular occurrence. Instead of scrapping them, Apple stored these chips and later deactivated one of the six GPU cores in the MacBook Neo. The result: a fully functional laptop with five GPU cores, whose chip cost Apple virtually nothing internally.
With the new production run, this calculation changes fundamentally. TSMC will then deliver regular, fully functional A18 Pro chips – without the advantage of having already written off the manufacturing costs elsewhere. A second cost driver also comes into play: DRAM prices have risen significantly since the Neo's market launch, because AI data centers worldwide are purchasing memory modules in large quantities. Both of these factors combined drive the bill of materials costs considerably higher.
Three options, three different messages
Culpan outlines three ways Apple could recoup the additional costs. The most direct option would be a simple price increase. Apple has not ruled out such a course of action. This option would most visibly impact the MacBook Neo's key selling point – namely, its starting price of $599 or €699.
A second option is to introduce new colors to keep the current model attractive despite potential price adjustments. The MacBook Neo is currently available in Citrus, Blush, Indigo, and Silver. The report doesn't specify which colors might be added. Additional options would create a psychological effect: buyers would get something new, even if prices increase.
Apple has already demonstrated the third approach elsewhere. The 256GB configuration of the Mac mini was discontinued worldwide in May 2026, with the entry-level model now starting at 512GB and €949. This same pattern could be repeated for the MacBook Neo: the $599 256GB model would disappear, and the cheapest available device would then be the 512GB version for $699 or €799. Individual component prices would remain unchanged – however, the effective entry-level price would increase by $100 or €100.
Only a temporary solution
Which option Apple chooses will likely depend heavily on the time horizon. The next generation is already in the starting blocks: The MacBook Neo 2 is expected to be released in early 2027 with the A19 Pro chip from the iPhone 17 Pro, along with 12 GB of RAM and a significantly more powerful GPU. This will also see the return of the recycled model – this time with discarded A19 Pro chips. Therefore, any measures taken with the current generation are explicitly intended as a bridge, not as a permanent fix.
What are the consequences of this strategy?
The decision to double production sends a clear signal from Apple: the MacBook Neo is being treated as a long-term pillar in the Mac lineup, not a limited experiment. At the same time, it demonstrates how closely Apple's Mac business is now tied to the global memory and manufacturing landscape. The recycling strategy only works as long as enough discarded chips are available – and Apple has now reached precisely that scaling limit.
For buyers, this means: Anyone looking for a base model at the current price should keep a close eye on developments in the coming weeks. Discontinuing the 256GB version could usually be implemented quickly; however, new colors or a direct price change would often be tied to a planned release date. In any case, doubling the production numbers fundamentally changes the logic of the MacBook Neo – the recycled success story is becoming a regularly manufactured mass-market product with normal profit margins.
Apple's affordable Mac faces its first test
The MacBook Neo has proven in its first few months that Apple can reach a broad customer base with a significantly more affordable entry-level Mac. This very success is now forcing the company to make decisions that have little to do with its original recycled appeal. Which of the three paths will ultimately be taken should be decided in the coming weeks – and with it, whether the MacBook Neo retains its biggest sales advantage. (Image: Apple)
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