MacBook Neo Could Get New Colors to Cushion Potential Price Hike

[MacRumors]

Apple is considering adding new colors to its MacBook Neo lineup as a way to cushion customers against a possible price increase, according to Taiwan-based tech columnist and former Bloomberg reporter Tim Culpan.

Writing in his latest Culpium newsletter, Culpan says that the runaway success of the entry-level laptop has left Apple paying more for the components inside it. As a result, he says new finishes are one option being weighed by Apple to keep enthusiasm high if those costs end up getting passed on to buyers. Starting at $599, the Neo is currently sold in Citrus, Blush, Indigo, and Silver.

Apple does not appear to have settled on which colors might join the lineup, and the report does not name any specific shades the company may be considering.

The pricing pressure is said to stem from Apple's decision to dramatically scale up production. After Neo demand outstripped initial expectations, Apple has reportedly asked suppliers to prepare capacity for 10 million units of the debut model, up from an earlier target of 5 to 6 million.

Shipping estimates on Apple's website currently sit at two to three weeks across the lineup in the U.S. and many other countries, with Quanta and Foxconn said to be racing to fill orders from factories in Vietnam and China.

However, meeting the doubled production target requires a fresh batch of A18 Pro chips from TSMC. The Neo uses the same system-on-chip as the iPhone 16 Pro, and Apple quickly exhausted its existing inventory filling early orders. The original run was made on TSMC's N3E process at least two years ago, and it is believed that TSMC has no spare 3nm capacity to allocate, as AI customers are sucking up much of the available output.

What's worse for Apple is that the first batch of A18 Pro chips were "binned" versions with minor defects that, rather than scrapping, were repurposed for the Neo by switching off one of the six GPU cores.

That means a new production run will result in top-tier chips rather than defective ones, which means a higher per-unit cost that Apple will have to pay even before TSMC adds a premium for expedited production.

DRAM prices have also climbed sharply since the Neo first went on sale -- again driven by AI data center build-out -- which has pushed the laptop's bill of materials higher still.

Culpan reports that Apple has not ruled out raising the Neo's price as a response.

Article Link: MacBook Neo Could Get New Colors to Cushion Potential Price Hike

 

[Samplasion]

I honestly wouldn't pay a premium *just* for a few new colors (which, given Apple's recent track record, will be just as desaturated as these are).

 

[nortonandreev]

I’d probably pay an extra for an orange one!

 

[Shalev Lazarof]

IMO The M4 iMac colors are amazing, probably the best Apple has ever offered.

 

[kalsta]

If you read the source article, the mention of new colours sounds more like an afterthought than a genuine rumour, tacked on at the very end. This is all it says on that subject:

Alternatively, Apple might add some new colors to the Neo lineup to soften the impact of higher prices and boost enthusiasm for the device.

 

[Pitogyro]

The product's just launched and the whole point of its existence is its price. There's no way a price hike is happening in the short term. In fact I'd wager that the neo will stay at $599 for the next decade. Yes the margins aren't as high as MBA or MBP but they made a conscious decision to hit this price target with the obvious benefit of market share.

 

[ksec]

It was always the wrong pricing to begin with. It should have been a $699 machine. And special edition only for bulk purchase education without Touch ID at $499.

 

[smaffei]

On this one, I think Apple really needs to split hairs. If they raise the price, they need to do it by $50 not $100. This is a VERY price sensitive market. If it gets too pricey (compared to what else is out there in the low end market), then it becomes a no-go for many. Then, that huge market evaporates overnight.

 

[jclardy]

The issue of course, is that the Neo is popular because of the price. A price hike significantly dampens the value.

 

[jayducharme]

Couldn't they use binned A19 chips? If the chips are binned and otherwise useless, seems like a win-win.

 

[NightFox]

The product's just launched and the whole point of its existence is its price. There's no way a price hike is happening in the short term. In fact I'd wager that the neo will stay at $599 for the next decade. Yes the margins aren't as high as MBA or MBP but they made a conscious decision to hit this price target with the obvious benefit of market share.

Yeah, I think even if they end up selling these things at a loss, their value to Apple will be in the halo effect - people starting off with a Neo and moving on to MBAs & MBPs when they come to upgrade

 

[SkippyThorson]

The Ford Maverick and Apple’s MacBook Neo have something in common.

Both companies underestimated demand severely, and to correct the supply limitations, they’d rather stifle demand with a good old fashioned price hike.

Way to go, corporate America. No one deserves a deal in this economy. 🙄

 

[thejadedmonkey]

On this one, I think Apple really needs to split hairs. If they raise the price, they need to do it by $50 not $100. This is a VERY price sensitive market. If it gets too pricey (compared to what else is out there in the low end market), then it becomes a no-go for many. Then, that huge market evaporates overnight.

I agree. I'd take it a step farther, I think that sales will fall off of a cliff if they go too high. It doesn't matter what Apple is offering, if it's unaffordable it's unaffordable.

 

[ProbablyDylan]

Way to go, corporate America. No one deserves a deal in this economy. 🙄

But won't anyone think of the shareholders??

 

[DEMinSoCAL]

Couldn't they use binned A19 chips? If the chips are binned and otherwise useless, seems like a win-win.

If they did, and didn't call it a new model, imagine all the upset customers who bought the A18 Pro model and are now unhappy that now the same model is better than theirs. Ain't gonna happen unless they call it a new model, in which case the original Neo would be the shortest lived Apple product ever!

Historically, a newer chip would be in next year's Neo.

 

[DEMinSoCAL]

I agree. I'd take it a step farther, I think that sales will fall off of a cliff if they go too high. It doesn't matter what Apple is offering, if it's unaffordable it's unaffordable.

If they increase the price $100, the $699 current model becomes $799 and now you're closer to a MacBook Air that is on sale somewhere, thus taking away demand for Neo.

 

[PBG4 Dude]

But won't anyone think of the shareholders??

Thanks to 401(k) retirement plans, we’re all shareholders now.

 

[bryo]

“That means a new production run will result in top-tier chips rather than defective ones, which means a higher per-unit cost that Apple will have to pay”

What? They are paying per wafer not per chip.

 

[thejadedmonkey]

“That means a new production run will result in top-tier chips rather than defective ones, which means a higher per-unit cost that Apple will have to pay”

What? They are paying per wafer not per chip.

They've been hoarding the binned A18 chips for a while, and they weren't being used for anything else. They were effectively trash and Apple was able to get them for "free". Now Apple has to manufacture more, specifically for the Neo, which adds to the BOM.

 

[DEMinSoCAL]

“That means a new production run will result in top-tier chips rather than defective ones, which means a higher per-unit cost that Apple will have to pay”

What? They are paying per wafer not per chip.

The "non-defective" ones have a higher value and Apple would lose money selling them at binned prices. I think that is what is meant by your quote.

 

[lapstags]

Like people are saying they might as well release the a19 pro neo now if they are going to hike the price. A

 

[ArtOfWarfare]

But won't anyone think of the shareholders??

This shareholder says what are you doing, take the dang marketshare! Be greedy when others are fearful. Apple has no shortage of cash. Everyone is terrified of inflation - now is the time to take the hit to profits in exchange for growing customer base + goodwill. Raise prices later when people are less freaked out.

Or... do smaller price changes. ie, how about a $20-50 price increase? I think it might be small enough that customers barely notice it, while it meaningfully improves margins.

 

[dandyryan]

they wouldn't need to raise the price if they stopped BURNING money on that flop iphone air (worth TWO neos btw) and used those chips for the neo instead

 

[Radeon85]

Couldn't they use binned A19 chips? If the chips are binned and otherwise useless, seems like a win-win.

They could, but then it would probably come with 12GB RAM and being a new chip, a faster CPU/GPU, which would be great. But doing it this soon, just two to three months after the Neo launched for the same price, would piss so many people off.

 

[ralph_sws]

Does the "analyst" think people buy the Apple Neo computer because it has pretty colors and is beautiful? No! They buy it because it's cheap. Even a $100 price increase will disrupt customer demand. $100 more is $100 closer to the MacBook Air. MacBook Pro prices are unaffordable for most users. Why are there constant $200, $400 discounts on Amazon? It's not because Apple is so generous, but because these computers aren't selling and are sitting in warehouses.