MacBook Neo Becomes Too Popular, Leaving Apple Short on A18 Pro Chips

Apple did not expect the MacBook Neo to sell this fast, and now that strong demand has pushed shipments beyond initial plans, the company is dealing with a supply issue tied directly to the A18 Pro chips that power the device. The laptop’s success has created pressure on Apple’s supply chain, especially since the company built the Neo using leftover chips that were never meant for large-scale reuse.

Tim Culpan says Apple relied on “binned” A18 Pro chips, which are processors with one disabled GPU core that did not meet the full specifications required for the iPhone 16 Pro. Instead of discarding them, Apple used these chips in the MacBook Neo to cut costs and hit the aggressive $599 starting price, which helped position the laptop as the most affordable MacBook ever released.

Apple is Running Out of Chips

Apple initially planned to produce around five to six million MacBook Neo units using this leftover chip supply, but demand has now exceeded those expectations and the stock of usable A18 Pro chips is close to running out. As a result, Apple now has to decide how to continue production without hurting its margins or disrupting supply.

One option involves asking TSMC to restart A18 Pro chip production, but that move comes with higher manufacturing costs since existing 3nm production lines already run at full capacity. Another approach includes shifting chip allocation from other products, though that also increases costs and affects broader planning.

Apple may adjust pricing to protect margins, and this could mean removing the $599 base model and keeping only the $699 variant in the lineup. At the same time, the company can speed up work on the next MacBook Neo with the A19 Pro chip, which was originally planned for a later release window.

Apple also has the option to accept lower profits for now since the MacBook Neo brings new users into the macOS ecosystem, which adds long-term value beyond hardware sales. For now, delivery estimates already stretch to several weeks, which shows how strong demand remains as Apple works through this supply challenge.