Consumers may face higher prices for the next generation of Apple devices. According to multiple reports originating from Asian tech publications and supply chain sources, Apple’s primary semiconductor partner, Taiwan Semiconductor Manufacturing Company (TSMC), is informing clients of a significant price hike for its advanced chip manufacturing services. This development represents a significant shift in the production cost of the core technology inside Apple’s ecosystem. These increased costs are widely expected to be passed on to consumers, affecting the retail price of future iPhones, iPads, and Macs.
The reports indicate a two-tiered price adjustment that will impact Apple’s entire modern product lineup. First, a report from the Korean social media platform Naver, by a tipster known as “yeux1122,” suggests TSMC is implementing a general price increase of 8-10% for all of its advanced chips built on processes below 5nm. This adjustment is significant as it affects the production of nearly every current-generation Apple silicon, including the A-series chips (A17 Pro through A19/A19 Pro) and the M3, M4, and M5-series chips found in the latest iPhones, iPads, and Macs.
A second, more dramatic increase is reportedly reserved for the new 2-nanometer (2nm) manufacturing process. Earlier reports from publications including the China Times and DigiTimes state that chips built on this next-generation technology are expected to see a price increase of at least 50% compared to the current 3nm generation.
To contextualize this potential cost, the 3nm A18 chip, which powers the current iPhone lineup, reportedly costs Apple approximately $45 per unit. In contrast, industry analysts project that the new 2nm chip—expected to be the A20 Pro chip and designated for the 2026 iPhone 18 Pro models—could cost Apple around $280 per unit, according to these initial reports. This substantial increase would make the processor the most expensive single component in the device.
Would a significant price increase for the next-generation iPhone 18 Pro make you reconsider upgrading, or is the best performance always worth the cost? Let us know your thoughts in the comments! Stay updated with the latest news on this by downloading the Appleosophy App from the App Store or by visiting our website.
