Apple Could Discontinue Cheapest MacBook Neo Model Due to Rising DRAM Prices, Analyst Claims

Apple may make changes to the MacBook Neo lineup as rising component costs and strong demand put pressure on production, according to an analyst. The company is reportedly evaluating ways to maintain the supply of the laptop while dealing with higher memory prices and increased manufacturing expenses. The development comes weeks after Apple acknowledged that demand for the MacBook Neo had exceeded its expectations, leading to longer delivery timelines in several markets.

Apple Reportedly Considering MacBook Neo Lineup Changes

According to analyst Tim Culpan's newsletter, Apple could discontinue the most affordable 256GB version of the MacBook Neo, which is priced at $599 (roughly Rs. 56,600) in the US and Rs. 69,900 in India. The report says the company may retain only the 512GB model that costs $699 (roughly Rs. 66,100) in the US and Rs. 79,900 in India.

Apple has reportedly increased its MacBook Neo production target to 10 million units, up from an earlier estimate of 5 million to 6 million units. The company is said to have decided to expand production after sales of the laptop surpassed expectations.

During Apple's April 30 earnings call, CEO Tim Cook said the company was facing supply constraints for the MacBook Neo. Delivery timelines for the laptop have reportedly stretched to as much as four weeks as suppliers, including Quanta and Foxconn, work to fulfil orders from factories in Vietnam and China.

The analyst claims Apple now needs a fresh batch of A18 Pro chips from Taiwan Semiconductor Manufacturing Company for the second production cycle of the MacBook Neo. The first batch of laptops reportedly used down-binned A18 Pro chips originally produced for the iPhone 16 Pro. These processors had one GPU core disabled and were repurposed for the MacBook Neo.

The report claims most of the new chips ordered for the laptop will be fully functional versions of the A18 Pro chip instead of down-binned units. Apple could reportedly disable one GPU core through software to maintain the same specifications across Neo models.

The report also points to rising DRAM prices as a major factor behind the possible lineup changes. Higher memory costs have reportedly increased the overall bill of materials for the MacBook Neo.

Apple recently adopted a similar strategy with the Mac mini by discontinuing the 256GB version and retaining only the higher-priced 512GB model. The analyst also noted that Apple removed the 512GB RAM option from the Mac Studio earlier this year amid ongoing memory supply constraints.