[echoangle]

They probably know that but don’t want to cannibalize their more expensive products.

[jug]

”If you don't cannibalize yourself, someone else will." — Steve Jobs

[asdff]

A lot of the buyers were never going to be buyers for the more expensive products.

[echoangle]

You can afford to lose a lot of low-value low-margin buyers for not losing one high-value high-margin buyer.

[MikeNotThePope]

I’m guessing the Neo attracts a lot of new Apple customers, many of which will become subscribers of higher margin Apple services & apps in the App Store.

[rjrjrjrj]

New Mac customers, perhaps. But new Apple customers? The vast majority of Neo buyers almost certainly already have an iPhone.

[GeekyBear]

I saw a recent report stating that the Neo was selling well in India, where the iPhone's share is negligible.

[alooPotato]

that doesn't, on its own, alleviate the cannibalization concerns

[asdff]

If they don't make this product at this pricepoint, a competitor does and that also cannibalizes potential higher sku macbook sales to a degree. Every chromebook sold is a potential macbook neo customer and apple let google eat their lunch for years.