Apple's budget MacBook Neo laptop is selling like hot cakes, company plans to double production

Apple is rapidly expanding production of its MacBook Neo, aiming to manufacture nearly 10 million units after demand far exceeded initial expectations. The company had originally planned to produce just 5 million units, but strong sales in the U.S. and India—where wait times now reach three weeks—have forced Apple to double output. Analysts suggest the surge is turning the budget MacBook into one of Apple’s most successful recent launches. The MacBook Neo initially used leftover A18 Pro chips from the iPhone 16 Pro, which sometimes had minor defects. By repurposing these chips—reducing the GPU cores from six to five—Apple kept costs low while launching the laptop at a competitive price. However, with spare chips running low, Apple may need TSMC to produce a new batch of A18 Pro processors specifically for the MacBook Neo, potentially increasing manufacturing costs. India has emerged as a key market for the MacBook Neo, priced at Rs 69,900, making it Apple’s most affordable laptop. The lower cost has attracted first-time buyers, students, and Windows users switching to macOS, contributing to record Mac sales. Apple’s CFO, Kevan Parekh, noted Mac revenue hit $8.4 billion, partly due to the Neo’s success. Long delivery delays in the U.S. and India indicate Apple underestimated demand. Buyers now face two to three weeks for shipments, signaling strong but unplanned popularity. If Apple follows through on doubling production, it could signal a broader shift toward more accessible Mac products. The MacBook Neo’s success may also force Apple to reconsider its pricing strategy. Industry speculation suggests the company could phase out the base 256GB model to focus on higher-margin storage options. Meanwhile, CEO Tim Cook highlighted the Neo’s impact, calling its launch week the best ever for new Mac customers.