According to analyst Tim Culpan, Apple is preparing a new production wave for the MacBook Neo, increasing total output from the originally estimated 5-6 million units to as many as 10 million devices.

After exhausting its inventory of A18 Pro chips left over from iPhone 16 Pro production, Apple is now expected to manufacture an entirely new batch of processors specifically for the Neo lineup.

The move could significantly reduce margins for the MacBook Neo because Apple would no longer be relying on selectively repurposed components from the iPhone production chain.

As profitability comes under pressure, Culpan believes Apple may discontinue the USD 599 configuration and reposition the USD 699 MacBook Neo as the standard entry-level option.

The MacBook Neo launched in March and quickly became a breakout success.

“We were very optimistic about the product before launch, but still underestimated the level of market enthusiasm,” Apple CEO Tim Cook said during the company’s second-quarter earnings call.

With the Neo repeatedly selling out, supply has reportedly been depleted faster than expected, forcing Apple to scale up production.

That expansion requires the company to spend heavily on manufacturing millions of new A18 Pro chips, an expense that did not exist for the initial shipment of Neo devices.

At the heart of the MacBook Neo are specially selected versions of the A18 Pro processor originally intended for the iPhone 16 Pro lineup.

These chips reportedly contain a minor defect in one of the six integrated GPU cores, making them unsuitable for use in premium iPhones.

That is why the MacBook Neo ships with a five-core GPU configuration, compared with the six-core GPU found in the iPhone 16 Pro.

With production costs rising for the second wave of devices, Apple may no longer be satisfied with the slim margins generated by the USD 599 model, especially as memory and storage prices continue climbing.

One possible solution, which Apple previously adopted for the Mac Mini lineup, would be eliminating the lowest-margin 256GB configuration altogether.

Such a move would make the USD 699 version, equipped with a 512GB SSD and Touch ID, the only standard option unless Apple introduces a higher-end 1TB model.

Users should not expect future MacBook Neo models built with newly produced A18 Pro chips to deliver stronger graphics performance.

To maintain consistency across the lineup, Apple is unlikely to enable the full six GPU cores and will probably continue disabling one core.

As a result, a MacBook Neo purchased today or later this year would likely retain the same specifications, including a six-core CPU and five-core GPU.

One area where buyers may see changes is color selection.

Culpan predicts Apple could introduce new color options for the Neo lineup to soften negative reactions if the starting price increases.

For students and budget-conscious consumers, the USD 100 price jump could effectively function as a free upgrade, bringing both Touch ID and double the storage capacity.

From a strategic perspective, discontinuing the entry-level 256GB model without Touch ID may make sense for Apple, even if many mainstream consumers are likely to miss the company’s cheapest MacBook option.

Du Lam