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Apple is considering dropping the cheapest MacBook Neo configuration as one possible response to the rising cost of building the popular laptop, according to Taiwan-based tech columnist and former Bloomberg reporter Tim Culpan.

macbook-neo-product-film-feature.jpg

The Neo currently starts at $599 for a 256GB model, with a 512GB version at $699.

Writing in his latest Culpium newsletter, Culpan says cutting the entry-level 256GB model is among the options Apple is weighing as component costs climb. Such a move would push the Neo's effective starting price up by $100 without raising the price of any individual configuration.

Apple recently made a similar move with two of its other Mac models. Apple stopped offering the Mac Studio with 512GB of RAM in March, and it dropped the Mac mini's lowest 256GB storage option last week, making the latter's starting price increase from $599 to $799 in the United States. The moves were made due to higher-than-expected demand and a worldwide shortage of memory chips bumping up costs as AI data center build-outs squeeze supply.

Culpan says the pricing strain around the Neo is tied to Apple's push to ramp up manufacturing. Shipping estimates on Apple's website currently sit at two to three weeks across the lineup following stronger-than-expected demand, and the company is said to have instructed suppliers to increase production capacity to 10 million units, roughly double the original forecast of 5 to 6 million.

To meet its revised production goal, Apple needs a new supply of A18 Pro chips from TSMC. The Neo uses the same chip as the iPhone 16 Pro, but existing inventory was reportedly depleted by the early demand. TSMC is also said to have limited spare 3nm capacity, with AI-related orders consuming much of its output.

Apple's costs are being further complicated by the fact that the initial Neo batch used lower-bin A18 Pro chips with one GPU core disabled. However, a fresh production run would produce more fully functional chips, increasing the per-unit cost even before any expedited manufacturing premiums are applied.

If Apple ultimately decides against dropping the $599 MacBook Neo configuration, Culpan says the company is alternatively considering introducing new color options for the current-generation Neo to cushion a potential price hike.

Article Link: Apple May Drop Base $599 MacBook Neo as Chip, DRAM Costs Climb
 
Apple will likely release an A19 Pro version of the Neo soon. The Mac Mini models are expected to be out of stock until the M5 upgrades arrive. Mac Studio is holding out the next ultra chip and probably the M6 Max. If it were going to get an M5 Max, it probably would have by now. RAM prices play a role in this, but for the mini and studio, it’s more likely due to high demand depleting inventories ahead of an anticipated refresh, long after production had ended for their components.
 
RAM prices play a role in this, but for the mini and studio, it’s more likely due to high demand depleting inventories ahead of an anticipated refresh, long after production had ended for their components.
Nonsense.
Tim wouldn’t have even mentioned it if it was simply inventory clear out before a new model, but it’s not
 
why don’t they just lower the starting SSS size?
If they raise price right now
It WON’T come back down next year 😢 and in this very very very very bad economy right now people will not simply buy it because they were already in a tight budget. My goodness the shortage is even more dire than 2020 ever was in my opinion.
 
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I’m expecting a price increase with the A19 Pro 12 GB RAM model. If that price increase just means dropping the 256 GB storage tier and keeping the 512 GB storage tier at the same price, that would be a major bonus for me, because I had no interest in a Neo with either 256 GB or 8 GB RAM, and because I was expecting that possible price increase for all tiers of the A19 Pro Neo.
 
If true, it's odd that Apple released the Neo at this price point. That would imply that memory and other component prices are increasing a lot faster than Apple was expecting just a few weeks ago.
 
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Apple will likely release an A19 Pro version of the Neo soon. The Mac Mini models are expected to be out of stock until the M5 upgrades arrive. Mac Studio is holding out the next ultra chip and probably the M6 Max. If it were going to get an M5 Max, it probably would have by now. RAM prices play a role in this, but for the mini and studio, it’s more likely due to high demand depleting inventories ahead of an anticipated refresh, long after production had ended for their components.
That would majorly tick-off the A18Pro Neo purchasers to have their laptop superseded so quickly. Plus, I don't think Apple has the A19Pro stockpiles either (and those chips have 12GB memory, so would be even more expensive to make more of). I could maybe see an A19Pro Neo coming in the Autumn, if there is a MBP refresh as it would be 8-9 months since the Neo launched and the iPhone 17 Pro would be out of production, so there would be limited competing demand for chips.
 
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If anything the opposite should be true, since the ram is integrated into the iPhone chip, that’s not gonna change for binned chips, they just may not offer a 512 gb storage option. 🤔 💻
 
The Neo isn’t for me, but I can see the appeal of a sub-$700 Mac laptop. I’m a bit surprised Apple doesn’t just fast track a Neo 2 with binned A19’s if supply is so constricted.
 
Don't believe it. They may deal with the temporary shortage of supplied, but they are picking up so many new Apple buyers they won't give that up. Same with the Mac mini, I feel that isn't a 'discontinuation' of the product but they are waiting for the M5 version to build up enough stock. Apple is the master of Just in Time delivery and that's great when you don't have issues. But they do so they wait.

My prediction. Neo stays the same, delays expected until the supply chain works itself out. Same with the introduction level Mac mini.

Apple can sell these products for a very small level of profit and then make HUGE bank from people who subscribe to all the services they then offer. Locking people into the eco system is far more valuable than an extra $100.
 
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