I am currently revising my “Innovative Entrepreneurs Replace Despair with Hope” paper in which I argue that if we unbind entrepreneurs from regulations they will be free to find new uses for labor that is currently unemployed or underemployed. In the paper I present as proof-of-concept, examples where entrepreneurs found uses for the previously useless, such as the startup that uses milkweed floss as insulation in parkas. I just ran across another example, in the passages quoted below, in which Apple has found uses for defective processor chips that previously would have been thrown out.
(p. A1) Apple, long revered for its premium-priced products, has managed to develop a booming business selling cheaper devices when most gadget makers are being hammered by rising costs.
One of its secrets: using chips with slight defects that might otherwise be thrown out.
The strategy is apparent in the technical minutiae of the newly released $599 MacBook Neo, which early data suggest is a hit with customers.
The chip powering the Neo is Apple’s A18 Pro, the same chip first used inside the iPhone 16 Pro two years ago, but with one key difference. The Neo version of the chip has a “5-core” graphics processor, one less than the version inside the 2024 iPhones, indicating that Apple was able to save some of the A18 Pro chips with a defective core for future use.
Defective cores can be disabled, leaving a chip that still functions perfectly well to power different, often cheaper devices—in this case an entry-level laptop instead of a top-of-the-line iPhone.
. . .
(p. A5) “If you can take the stuff that doesn’t meet highest level specs and still use it, you can save money, scrap and time,” says Tim Culpan, a supply-chain analyst who has written about Apple’s Neo chip orders. “Also you can reach a lot more customers you might not otherwise be able to sell to.”
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.
. . .
Using chips in the Neo that might otherwise be tossed is one way Apple was able to deliver its first entry-level laptop.
For the full story, see:
(Note: ellipses added.)
(Note: the online version of the story has the date May 17, 2026, and has the title “Apple Is Making Hit Products and High Profits From Imperfect Chips.”)
A working draft of the paper I refer to in my opening comments is: