Apple Faces MacBook Neo Chip Shortage on High Demand

Apple is grappling with an unexpected supply chain challenge as surging demand for its new MacBook Neo laptop has depleted stocks of the specialized chips powering the device, prompting discussions with suppliers about whether to increase production at the cost of profit margins.

The MacBook Neo, launched in early March, has seen sales far exceed Apple's initial projections of 5 to 6 million units. The laptop, priced at $599 for the base 256GB model and $699 for the 512GB version, comes in four colors and two configurations. It marked the strongest launch week ever for first-time Mac customers, according to CEO Tim Cook. Assembly takes place in facilities in China and Vietnam.

At the heart of the issue is the A18 Pro processor, originally developed for the iPhone 16 Pro. Sources familiar with the matter indicate that Apple repurposed leftover and binned versions of these chips for the MacBook Neo. During iPhone production, some A18 Pro chips featured a defective GPU core, which Apple disabled to create a 5-core GPU variant instead of the standard 6-core design. This approach allowed the company to use what were essentially surplus components at minimal additional cost, enabling...