Apple’s latest MacBook Neo has become a bestseller, prompting the company to double its production target from the originally planned 5 million units to roughly 10 million. The move follows a record‑breaking launch that left demand exceeding supply, a trend the earnings call confirmed will persist into the current quarter.

To meet the surge, Apple is turning to TSMC for a fresh run of its flagship A18 Pro chips. The first Neo batch used leftover units, originally earmarked for the iPhone 16 Pro, that had a single defective GPU core. Storing these “bin‑1” chips allowed Apple to fit them into the Neo’s five‑core configuration.

However, the bin‑1 supply is dwindling. Analysts estimate Apple must order a new batch from TSMC, driving up costs that were previously covered by surplus inventory. Whether Apple absorbs the extra spend or passes it on to consumers remains unclear, but the company may shift its pricing strategy, mirroring the Mac Mini’s move to drop the lowest‑tier model.

Apple’s strategy underscores how chip binning can influence laptop economics. The upcoming second‑generation Neo, slated for early 2027, will rely on the next‑gen A19 Pro, likely sourced from iPhone 17 rejects. For now, the company must balance inventory scarcity, production costs, and price sensitivity to keep the Neo’s appeal intact.