Apple May Increase iPhone 18 Prices Due to TSMC’s High 2nm Chip Production Costs and Rising Tariffs

Apple is currently facing challenges in maintaining the pricing structure of its iPhone models due to newly enacted tariffs imposed by the Trump administration. These import taxes might necessitate an increase in prices, but that is only part of Apple’s concern. A major supplier, TSMC, is anticipated to raise prices for its 2nm chips, which may lead to higher costs for the upcoming iPhone 18 models.

Understanding the Impact of TSMC’s 2nm Chip Price Increase on iPhone 18 Costs

Recently, we reported that Apple is gearing up to unveil its first foldable iPhone next year, with expected pricing potentially exceeding $2, 000, as indicated by insider leaks. Notably, a recent post from the leaker Digital Chat Station on Weibo suggested that TSMC’s upcoming 2nm chips will also contribute to price hikes across Apple’s new devices. The leaker stated that “the cost is expected to increase significantly, leading to higher prices for the new models.”

The anticipated price increase can be attributed primarily to the escalated manufacturing costs associated with the 2nm chips, which will likely be transferred to consumers. Industry analyst Ming-Chi Kuo has suggested that the advanced 2nm chip technology may primarily benefit the iPhone 18 Pro models, setting them apart from their standard counterparts and justifying a higher price point. However, given that TSMC’s production yields for these chips have reportedly risen to between 60 and 70 percent, there is speculation that all models in the iPhone 18 lineup could potentially incorporate the 2nm technology.

Apple is committed to preserving its profit margins, which implies that consumers may face steeper prices in the upcoming year, irrespective of the company’s intentions to keep costs manageable. Additionally, Apple must navigate the complexities introduced by substantial import tariffs. Recent analysis suggests that the base model of the iPhone 16 Pro might see its price rise from $999 to approximately $1, 400, should these reciprocal tariffs take effect.

At this moment, it remains uncertain whether Apple will adjust the pricing for its current iPhone 16 series, especially since the company has reportedly accumulated a significant inventory. This stockpile could provide the flexibility to delay any price adjustments until the launch of the iPhone 17 models. However, if demand surges beyond available supply in the United States, Apple may have no choice but to increase prices for the current lineup unless they choose to absorb the additional costs. We will continue to monitor this situation and provide timely updates, so stay tuned for more information.

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