Apple increased the starting prices for the iPhone 17 Pro compared to its predecessor. The iPhone Air, a new entrant in the lineup that’s replacing the Plus variant, also comes at a premium. The latest development suggests that next year’s iPhone 18 series may see an even higher price rise if the newly reported A20 chip costs pan out.
Apple’s A20 chip cost may cause the iPhone 18 series price to significantly rise
A new report from China Times outlines how the growing demand and new fabrication processes have led to increased costs for TSMC and its partners over time. It says 2026 is the year when the price increases could be significant. Apple’s A20 chip in the iPhone 18 series may use a cutting-edge new 2nm process. Reportedly, TSMC has invested a large capital into the development of the new process and is not willing to discount/negotiate on costs.
The TSMC’s new 2nm process will reportedly come with at least a 50% price increase over the 3nm process. If this is indeed true, it’s quite significant.
The iPhone 18 series is not due until next year
Apple and TSMC don’t usually disclose the financial aspects of their partnership. But if the report pans out, it could lead to a significant price increase for the iPhone 18 series. However, we can’t say for certain whether the tech giant would pass along the higher costs to customers.Â
If the stakes are higher, then it might need to, at least for some models. For instance, this year, the base iPhone 17 stayed at $799 and has seen very high demand. So Apple may raise the starting prices of next year’s iPhones, not only in response to the increased demand, but also escalating prices for the A20 chip.
The iPhone 18 is not due until next year, so Apple may not have finalized many aspects just yet. The company may withhold other features it was planning to upgrade if the higher A20 costs are really a concern.
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