This autumn, Apple has increased the starting prices for the iPhone 17 Pro and iPhone Air, surpassing those of their matching predecessors, resulting in a general lineup price rise. Nevertheless, a recent report indicates that we may witness further pricing adjustments next year if speculated costs for the A20 chip materialize.
### Transition to 2-nanometer process for A20 reportedly incurs substantial expenses
As per a report from *China Times*, inflation in the semiconductor sector is emerging as a notable issue. The article details how rising demand and new manufacturing methods have resulted in higher expenses for TSMC and its associates over time. Next year, these cost hikes could be particularly pronounced.
Apple’s A20 chip in the forthcoming iPhone lineup is anticipated to adopt an advanced 2-nanometer manufacturing process. However, TSMC has made significant investments in its development and is reportedly resistant to cost negotiations. Consequently, this new 2-nanometer process is projected to involve at least a 50% price increment when compared to the existing 3-nanometer process.
Although Apple and TSMC keep the specific financial details of their collaboration confidential, this price rise could result in notable overall cost increases for Apple’s offerings.
### 9to5Mac’s Perspective
It is not assured that Apple will transfer these elevated costs to consumers, but should the increases be substantial, it may have to do so for specific models. For example, the base iPhone 17 remained at $799 this year and has seen unusually strong demand. Thus, Apple might contemplate increasing its starting price next year in light of both heightened demand and the escalating costs of the A20 chip.
With almost a year remaining before the new iPhones are launched, Apple is likely working on finalizing many aspects of the iPhone 18 lineup. If the elevated costs of the A20 chip become a worry, Apple could potentially modify its strategy by omitting other features it originally intended to enhance.
Do you believe Apple will hike iPhone prices next year? Why or why not? Share your thoughts in the comments.
