Apple is considering dropping the cheapest MacBook Neo configuration as one possible response to the rising cost of building the popular laptop, according to Taiwan-based tech columnist and former Bloomberg reporter Tim Culpan.

The Neo currently starts at $599 for a 256GB model, with a 512GB version at $699.

Writing in his latest Culpium newsletter, Culpan says cutting the entry-level 256GB model is among the options Apple is weighing as component costs climb. Such a move would push the Neo's effective starting price up by $100 without raising the price of any individual configuration.

Apple recently made a similar move with two of its other Mac models. Apple stopped offering the Mac Studio with 512GB of RAM in March, and it dropped the Mac mini's lowest 256GB storage option last week, making the latter's starting price increase from $599 to $799 in the United States. The moves were made due to higher-than-expected demand and a worldwide shortage of memory chips bumping up costs as AI data center build-outs squeeze supply.

Culpan says the pricing strain around the Neo is tied to Apple's push to ramp up manufacturing. Shipping estimates on Apple's website currently sit at two to three weeks across the lineup following stronger-than-expected demand, and the company is said to have instructed suppliers to increase production capacity to 10 million units, roughly double the original forecast of 5 to 6 million.

To meet its revised production goal, Apple needs a new supply of A18 Pro chips from TSMC. The Neo uses the same chip as the iPhone 16 Pro, but existing inventory was reportedly depleted by the early demand. TSMC is also said to have limited spare 3nm capacity, with AI-related orders consuming much of its output.

Apple's costs are being further complicated by the fact that the initial Neo batch used lower-bin A18 Pro chips with one GPU core disabled. However, a fresh production run would produce more fully functional chips, increasing the per-unit cost even before any expedited manufacturing premiums are applied.

If Apple ultimately decides against dropping the $599 MacBook Neo configuration, Culpan says the company is alternatively considering introducing new color options for the current-generation Neo to cushion a potential price hike.