[singhrac]

I think there's an economic principle here (and I don't know the sign), but this is all assuming a frictionless vacuum - in practice, Apple cannot sell 25% more M1 Macs if they lower their price to $800, or whatever, since their marginal costs rise in that case (because TSMC is totally booked!).

[klelatti]

That's today but I'd expect next year's sub $1000 Macs will use previous year's M series chips in due course. (Exactly the iPhone and iPad playbook).