Why Is Apple’s MacBook Neo So Cheap While Rivals Raise Prices?
The new Apple MacBook Neo has taken the computing market by storm. A low‑priced device aimed at non‑power users that still delivers decent performance is rare in 2026. So why haven’t other companies jumped on this trend? Many people started asking this question after Microsoft raised prices on its Surface laptops and tablet hybrids. For example, the 2025 Surface 7 went from $999 to $1,499. Even Microsoft’s entry‑level devices that would compete with the Neo have increased from $799 to $1,049.
Looking at similarly spec’d devices, they’ve either raised prices or were already too expensive from the start. What’s really going on? Apple has a significant advantage over the rest of the industry thanks to deep planning of its manufacturing. On top of that, it has so far managed to insulate itself from the ongoing “RAMpocalypse.” The tech industry doubled down on AI last year despite concerns over societal and environmental damage, and in doing so, created a hardware shortage. AI data centers are hoovering up a large portion of everyday components, driving up prices.
RAM Is the Major Factor
For the past few months, AI has effectively disrupted RAM production. OpenAI has a deal to buy 40% of the world’s RAM supply, an effect that will last until at least 2027. Every device with any computing capability – laptops, TVs, smart devices – needs RAM. It’s not known how much RAM Apple had stockpiled, but the company hasn’t publicly expressed worry.
Ninety‑two percent of the world’s RAM supply comes from just three companies. One of them, Micron, has already pulled out of the consumer business to focus on AI and enterprise customers. SK Hynix and Samsung are splitting their output between consumer and business clients, with reports that Apple and Samsung have become quite close during the shortage. The Korea Economic Daily reported in 2025 that Apple was increasing its RAM supply from Samsung to 70%, up from 60%.
Other computer manufacturers like Asus, MSI, or Acer don’t have the massive financial resources that Apple has. Worth nearly $4 trillion with $416 billion in revenue in 2025, Apple has the capital to produce almost anything it wants. Hence, the MacBook Neo uses only 8 GB of RAM and an iPhone A18 processor. On the other hand, Windows 11 requires at least 4 GB of RAM to run, but is only stable on 8 GB or more due to higher overhead.
Cheaper Parts, Cheaper Laptop
Despite the praise it has received, the MacBook Neo is somewhat cobbled together. Not only is it a macOS device running on an iPhone chip, but it also uses only 8 GB of unified RAM. For years, Apple has claimed (via Tom’s Hardware) that its 8 GB is equivalent to 16 GB – a claim that may not be entirely true, but it shows why Apple can cut costs here. The laptop is also aimed at the education sector, with a $100 student discount, since most school tasks don’t require a fully loaded device. That’s just one reason the MacBook Neo might not be for everyone.
It also helps that Apple has complete control over its chips. In 2020, Apple transitioned to Apple Silicon with its M‑series laptops. It now only relies on fabs like TSMC in Taiwan, having already secured production of other hardware components in China throughout the 2000s and 2010s. Other manufacturers don’t have this kind of grip over entire production lines. Tim Cook’s work before becoming CEO created a smooth supply pipeline.
Given this, companies that produce Windows or even Linux‑based laptops have to contend with the broader manufacturing crisis. Everyone gets a seat at the table, but massive money‑makers like Apple or Nvidia get to cut in line. However, even Apple is feeling pressure from AI demand – the company is now assisting with the push toward American‑made chips.
