According to foreign media reports, this fall, Apple raised the starting prices of the iPhone 17 Pro and iPhone Air further compared to previous models, driving up prices across its entire product line. However, according to a new report, if the rumored cost increase for the A20 chip is true, we may see even more significant price adjustments for the iPhone 18 series next year.
CNMO has learned that the A20 chip is expected to use an advanced 2nm process, but this technological upgrade could come with significant cost increases. TSMC has reportedly invested heavily in developing this new process and is reluctant to offer discounts or negotiate prices as usual. Instead, TSMC's 2nm process is expected to be at least 50% more expensive than its 3nm process.
While Apple and TSMC have not disclosed specific financial details of their collaboration, this cost increase could significantly increase overall iPhone production costs. Analysts suggest that if cost pressures are severe enough, Apple may be forced to pass on some of the increased costs to consumers, at least for some models.
For example, this year's base iPhone 17 model maintained a starting price of $799, despite exceptionally high demand. Therefore, Apple may further increase the starting price of its new iPhones next year due to rising A20 chip costs and increased market demand. With nearly a year until the next iPhone release, Apple is still finalizing details for the iPhone 18 series. If the A20 cost issue becomes a focus, the company may balance costs by cutting other originally planned feature upgrades.
