iPhone 18 Price Increase Expected Amid Rising Costs
Apple’s upcoming iPhone 18 lineup is expected to see a price increase, marking the first hike in over five years. This change comes as the company prepares to introduce its next-generation 2nm ‘A20’ chipset, which is projected to raise production costs significantly. Additionally, Apple is anticipated to launch its ‘M6’ chip for Mac and iPad devices in 2026, also utilizing the advanced 2nm technology. As the tech giant navigates these changes, consumers may need to brace for higher prices on future iPhone models.
New Chip Technology and Production Costs
According to a recent post by the tipster Digital Chat Station on Weibo, Apple, alongside Qualcomm and MediaTek, is set to adopt TSMC’s cutting-edge 2nm process technology. This advancement is expected to debut with the iPhone 18 series, likely in the latter half of 2026. The tipster warns that the production costs for these new 2nm chips are projected to rise significantly, which could lead to a price increase for the iPhone 18 lineup. While devices powered by Snapdragon and MediaTek processors may also see price hikes, specific models equipped with these new chips have yet to be disclosed.
The leaker further clarifies that the upcoming A19 Pro, Snapdragon 8 Elite 2, and MediaTek Dimensity 9500 chips will not utilize TSMC’s 2nm process. Instead, these chips are expected to be manufactured using TSMC’s N3P node, the same technology employed for the A18 Pro. TSMC is currently preparing new facilities for the production of 2nm chips, with fabrication anticipated to commence in the coming months. If these claims hold true, Apple could be the first to benefit from TSMC’s advanced technology.
Potential Price Increase for iPhone Models
If the information from Digital Chat Station is accurate, Apple may raise the price of the iPhone for the first time since the iPhone 12, which has maintained a base model price of $799 (approximately Rs. 68,200). The increased production costs associated with the new chipset could compel Apple to pass these expenses onto consumers. A December 2024 report indicated that transitioning from TSMC’s 3nm node to 2nm could see processor prices surge from $50 (around Rs. 4,300) to $85 (approximately Rs. 7,300), representing a staggering 70 percent increase.
Initially, it was believed that only the iPhone 18 Pro models would feature the new 2nm chips, allowing Apple to keep the starting price of the base model unchanged. However, the overall cost structure may lead to a different outcome, as the company weighs its options in light of rising production expenses.
Impact of Tariffs and Manufacturing Decisions
In addition to the rising costs associated with new chip technology, Apple may face further financial pressures from tariffs on semiconductors and the electronics supply chain. Proposed by US President Donald Trump earlier this week, these tariffs could significantly impact production costs. If Apple decides to shift a portion of its iPhone manufacturing to the United States, it would likely lead to increased expenses, which could ultimately be reflected in the prices of upcoming iPhone models.
As Apple navigates these challenges, consumers and industry analysts alike will be closely monitoring the company’s decisions regarding pricing and manufacturing strategies. The potential for a price increase on the iPhone 18 lineup marks a significant shift for the tech giant, which has maintained stable pricing for several years. With the introduction of advanced chip technology and external economic factors at play, the landscape for Apple’s future smartphone offerings is poised for change.
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