Apple is increasing production of the $599 MacBook Neo following unexpectedly high consumer demand.
The company doubled its production target for the laptop from approximately 5-6 million units to 10 million units.
Apple initially used binned A18 Pro chips with minor imperfections from iPhone production to lower costs. Depleted supplies of these repurposed chips forced Apple to place new, dedicated orders with supplier TSMC.
These dedicated A18 Pro chips are more expensive than the initial supply of salvaged silicon. The shift to costlier components may reduce profit margins for the entry-level device.