Apple Halted M2 Chip Production in January Amid 'Plummeting' Mac Sales

Apple halted production of its M2 series chips at the start of 2023 following a pronounced slump in global demand for MacBooks, claims a new report out of Korea.

M2 MacBook Pro and Mini Feature
Facing "plummeting" Mac sales amid a severe PC market downturn, Apple in January completely suspended production of its custom-designed M2 series processors that power new MacBook Pro and Mac mini models and the latest MacBook Air, according to The Elec.

Taiwan's TSMC did not send 5 nano-process M2 chip wafer workpieces to the outsourced semiconductor package test (OSAT) in January and February, according to the OSAT industry on the 3rd. It is believed that it was because Apple requested to stop production as demand for MacBooks dwindled.

As the report notes, TSMC finalizes its fabrication process by sending the wafer-processed products to Amkor Technology's Korean factory for packaging work. However, in January and February there were reportedly no products forthcoming, which also forced the package material parts company for M2 chips to stop supplying the usual materials.

The suspension is said to have continued through February, after which production of M2 series chips resumed, but they were "only half the level of the previous year," said the Korean-language report, quoting a person familiar with the matter.

Apple's revenue was down approximately 5% year-over-year in the first quarter, a steeper decline than had been expected by analysts as Apple grappled with iPhone supply issues in particular but which also saw declines in Mac and wearables.

iPad revenue was up 30% thanks to the launch of new M2 ‌iPad‌ models, but Mac revenue saw a notable drop because there were no new Macs released in the final months of 2022. Mac revenue was $7.7 billion, down from $10.9 billion in the year-ago quarter. ‌

During his Q1 2023 earnings call, CEO Tim Cook admitted that Apple faced a "challenging" situation in the PC market. "The industry is contracting," said Cook. "We have a low share but we have a competitive advantage with Apple silicon, so strategically we are well positioned within the market. But I think it will be a little rough in the short term," added the Apple chief.

Apple unveiled the M2 chip in June 2022, when it appeared in an updated 13-inch MacBook Pro and a new MacBook Air. In January 2023, Apple then added M2 Pro and M2 Max variants to its 14-inch and 16-inch MacBook Pro models, and also added M2 and M2 Pro chips to its Mac mini configuration options.

Apple's first custom processor, the M1, was announced in late 2020 and still powers Apple's 24-inch iMac, which was launched in April 2021. Almost a year later the Mac Studio was unveiled with Max and Ultra versions of the same chip.

An updated version of the iMac with the M2 chip is seemingly missing from Apple's plans, according to Bloomberg's Mark Gurman, and there is no word on if or when a refreshed version of the ‌Mac Studio‌ with M2‌ Max and ‌M2‌ Ultra chips will launch.

Related Roundups: MacBook Pro, MacBook Air, Mac mini
Related Forums: MacBook Pro, MacBook Air, Mac mini

Popular Stories

iphone 16 pro ghost hand

5 Reasons to Skip This Year's iPhone 17 Pro

Thursday July 10, 2025 4:54 am PDT by
Apple will launch its new iPhone 17 series in two months, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive. If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming...
apple wallet drivers license feature iPhone 15 pro

Apple Says iPhone Driver's Licenses Will Expand to These 8 U.S. States

Tuesday July 8, 2025 11:26 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Unfortunately, this feature continues to roll out very slowly since it was announced in 2021, with only nine U.S. states, Puerto Rico,...
macbook pro blue green

M5 MacBook Pro No Longer Coming in 2025

Thursday July 10, 2025 12:38 pm PDT by
Apple does not plan to refresh any Macs with updated M5 chips in 2025, according to Bloomberg's Mark Gurman. Updated MacBook Air and MacBook Pro models are now planned for the first half of 2026. Gurman previously said that Apple would debut the M5 MacBook Pro models in late 2025, but his newest report suggests that Apple is "considering" pushing them back to 2026. Apple is now said to be...
iPhone 17 Pro in Hand Feature Lowgo

Leaker Reveals Amount of RAM in iPhone 17 Through iPhone 17 Pro Max

Wednesday July 9, 2025 8:08 am PDT by
Three out of four iPhone 17 models will feature more RAM than the equivalent iPhone 16 models, according to a new leak that aligns with previous rumors. The all-new iPhone 17 Air, the iPhone 17 Pro, and the iPhone 17 Pro Max will each be equipped with 12GB of RAM, according to Fixed Focus Digital, an account with more than two million followers on Chinese social media platform Weibo. The...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro to Reverse iPhone X Design Decision

Monday July 7, 2025 9:46 am PDT by
Since the iPhone X in 2017, all of Apple's highest-end iPhone models have featured either stainless steel or titanium frames, but it has now been rumored that this design decision will be coming to an end with the iPhone 17 Pro models later this year. In a post on Chinese social media platform Weibo today, the account Instant Digital said that the iPhone 17 Pro models will have an aluminum...
Foldable iPhone 2023 Feature 1

Foldable iPhone Display Production Begins Ahead of Launch Next Year

Wednesday July 9, 2025 10:59 pm PDT by
Production of foldable OLED displays for Apple's first foldable iPhone have begun ahead of its expected launch next year, Korea's ETNews reports. The first foldable iPhone's displays are being produced by Samsung Display, who are establishing a production line dedicated to the upcoming Apple device its A3 factory in Asan, Chungcheongnam-do. The production line will make displays exclusively...
apple tv 4k new orange

New Apple TV Expected Later This Year With These New Features

Saturday July 12, 2025 3:09 pm PDT by
A new Apple TV is expected to be released later this year, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the next Apple TV, according to rumors. Rumors Faster Wi-Fi Support The next Apple TV will be equipped with Apple's own combined Wi-Fi and Bluetooth chip, according to Bloomberg's Mark Gurman. He said the chip supports ...
iphone 16 pro pro max

iPhone 17 Pro Models With BOE Displays Will Be Sold in China Only

Thursday July 10, 2025 11:59 pm PDT by
iPhone 17 Pro and iPhone 17 Pro Max models with displays made by BOE will be sold exclusively in China, according to a new report. Last week, it emerged that Chinese display manufacturer BOE was aggressively ramping up its OLED production capacity for future iPhone models as part of a plan to recapture a major role in Apple's supply chain. Now, tech news aggregator Jukan Choi reports...

Top Rated Comments

thiswasamisatke Avatar
30 months ago
I love Apple silicon but I am finding the release cycle very confusing. I feel like the Pro/Max/Ultra chips need to come before the regular chip, otherwise you end up in the weird scenario where the lowest end Macs are running on newer chips than those at the highest end.
Score: 71 Votes (Like | Disagree)
Cassady Avatar
30 months ago
Is this not merely a case of exceptional sales of the M1, following the debacle that was the touchbar Intel laptops — coupled with the M1 iteration being so good, that fewer see the need to upgrade to the M2 versions?

Personally, it will be a long time before I find a need to upgrade my 14” M1 MBP. Surely my situation is not unique?
Score: 71 Votes (Like | Disagree)
afd Avatar
30 months ago
They are more than I can afford. Don't really want to spend more than £1000 then you've got to factor in £400 to upgrade RAM and SSD since you can't do it yourself any more.
Score: 60 Votes (Like | Disagree)
Unggoy Murderer Avatar
30 months ago

because the new MacBook Pro was a terrible update and not worth it; apple stop with the minor updates year after year
Are you expecting like a new "new" MacBook Pro every year or something? It's perfectly normal for OEMs to release major hardware revisions every few years with minor increments in between.
Score: 46 Votes (Like | Disagree)
Matt Leaf Avatar
30 months ago
I think it was on Unbox Therapy where the guys were talking about what people are looking for in a slow economy, and that's value for money. Performance-wise, the Air can do most tasks outside of demanding Pro workflows. Even if folks do some creative projects every now and then, the Air is enough - and in some ways that competitive advantage of Apple Silicon is a shot to the foot, most folks just don't need a MacBook Pro anymore.

One thing I will say, is the loss of Bootcamp, coupled with growing interest in gaming on PC - even doing a build - I think this time around Mac folks are actually looking at the PC as a 'Pro' purchase - or at least, that's where that money is going, because the Mac can no longer scratch that itch for tinkerers and folks who like to dual boot. A lot of Mac users have become used to being able to dual boot for what feels like decades.

I know for me that's the case - the Air is a fantastic everyday laptop, great plugged into a screen and covers a lot of bases, but for gaming & other Pro workflows, for hobbiest computing, it's not hard to be looking elsewhere.
Score: 34 Votes (Like | Disagree)
boak Avatar
30 months ago
I think M1 family catered to a huge pent-up demand?
Score: 33 Votes (Like | Disagree)