Earlier this year, Apple announced its most affordable laptop category with MacBook Neo, priced at just Rs 69,990. However, the company is reportedly considering increasing its price by introducing fresh colour options to the lineup. However, there are more reasons behind the price hike.

According to Tim Culpan's newsletter, a Taiwan-based tech columnist,  Apple is spending more money on the parts and components that are used to build it. Due to this reason, the company may eventually increase the MacBook Neo price for customers.

Must read: Apple to pay $250 million in settlement to iPhone users over delayed Siri AI features

In addition, to make the laptop look and feel attractive despite a possible price hike, the company is also considering introducing new colour options or finishes. As of now, the device is available in four colour options: four colours: Citrus, Blush, Indigo, and Silver. However, Apple has not decided on which colours may sit right for the lineup.

MacBook Neo demand skyrockets

The report further states that Apple doubled the production of MacBook Neo amid unexpectedly higher demand. Apple CEO Tim Cook also told investors that the device outstripped initial expectations and has asked suppliers to prepare 10 million units, up from the target of up to 6 million units.

Cook said, “We were very bullish on the product before announcing it, but we under-called the level of enthusiasm that would be with it.” and that “Right now we’re supply-constrained on the MacBook Neo.”

Must read: Apple invests Rs 100 crore to boost renewable capacity in India

Apple is reported to face rising production costs for the MacBook Neo because it needs a new supply of A18 Pro chips from TSMC after quickly using up its existing inventory due to strong demand.

Previously, the chips were lower-cost “binned” versions with minor defects, and were repurposed for the Neo, but the new production batch is said to use the premium chips.

On the other hand, there’s a shortage of advanced 3nm chip manufacturing capacity as AI companies are heavily using it to make powerful AI processors. At the same time, DRAM memory prices are also increasing due to strong demand. Therefore, due to these constraints, Apple may consider a price hike for MacBook Neo.