Apple Is Making Hit Products and High Profits From Imperfect Chips - WSJ

Don’t forget the software matters, too.

Apple has used its flexibility with its own silicon to develop lower-priced iPhones and computers, many of which have sold well. The Neo is so popular that Apple is running low on leftover chips and has been forced to order new ones, according to people familiar with its supply chain.

Repurposing chips is one of many ways Apple takes advantage of its formidable supply chain. Lately it has weaponized prices to attract new users. The Neo is cheap enough to poach potential Chromebook and PC users; the iPhone 17e, which also uses a “binned” chip, is cheap enough to attract Android users.