iPhone prices may rise due to high chip costs. TSMC has started warning its largest clients that the prices of all chips manufactured using technology smaller than 5 nanometers will soon increase. The product’s cost is expected to rise by about 10%.
Next year, Apple is expected to transition to 2-nanometer (2-nm) technology, which will form the basis of the A20 and M6 chips. According to an insider report, the price of the mobile version (A20) will be $280. This price will allow the chips to “topple” the display — usually the most expensive part of a smartphone — making the chips more expensive than the display.
Companies usually pass such additional costs onto customers to prevent revenue decline. Apple will be no exception, but it seems that consumers will have a choice. Industry analyst Ming-Chi Kuo previously wrote that “due to pricing considerations, not all iPhone 18 models will get the 2-nm chip.” Most likely, this expensive upgrade will only apply to the “Pro” models, while the base (standard) iPhone will retain the previous-generation chip.
