MacBook Neo: Apple Is Reportedly Cutting Production Significantly

Jens Scharfenberg
Jens Scharfenberg · 2 min. read
MacBook Neo
Picture: Apple

The Apple MacBook Neo is considered one of the company’s biggest sales successes in recent years. Nevertheless, Apple is reportedly set to significantly scale back production—not due to a lack of demand, but because of the global DRAM crisis.

Production target reduced by up to 40 percent

Back in April, an analyst had already pointed out that the high demand for the MacBook Neo could present Apple with a dilemma. Originally, the plan was to manufacture five to six million units, largely using inventory of partially defective Apple A18 Pro chips with only five functional GPU cores instead of six. After demand significantly exceeded expectations, Apple raised the target to ten million units. However, according to a recent report by DigiTimes, this target is now set to be cut by up to 40 percent, to just six to seven million devices by the end of the year.

DRAM Crisis Slows Chip Production

The reduction is not due to demand, but rather to a capacity shortage at Apple’s contract manufacturer, TSMC. Since expensive AI chips take priority over cheaper processors like the A18 Pro during production, the supply of the chip needed for the MacBook Neo is becoming scarce. Apple is thus faced with the choice of either paying significantly more for additional chip capacity or scaling back production. These capacity bottlenecks have long since affected more than just Apple: Prices for RAM, SSDs, and batteries have also risen noticeably over the past few months, putting pressure on the entire laptop market.

Apple Chooses Lower Production Volumes Over a Price Increase

According to reports, Apple has opted for the second option to avoid both eroding the profit margins of the affordable MacBook and having to raise the price again just a few months after its market launch. For buyers, however, this means that the MacBook Neo is likely to be sold out more often and harder to find in the coming months, even though demand remains high.

According to market analyses, the MacBook Neo is said to have already significantly boosted Apple’s total laptop sales—a success that is all the more remarkable given the notebook industry’s contraction due to DRAM shortages. If you’re interested in Apple’s current notebook lineup beyond the Neo, you’ll find more details in our article on the MacBook Air with M5.