New iPhones Will Become More Expensive 0 11

Apple will have to raise prices on the iPhone in 2026 to reduce production costs. This was reported by the Chinese publication China Times.

The upcoming iPhone 18 series smartphones are expected to feature the A20 processor. It is believed that it will be produced by TSMC and will be the first chip designed using a 2-nanometer process technology. It will also serve as the basis for the M6 processors. Insiders believe that its cost will be significantly higher than that of the A19, which will force Apple to increase smartphone prices.

Sources have revealed that TSMC informed its partners that 2-nanometer chips will be at least 50 percent more expensive than their 3-nanometer counterparts. The production is associated with unusually high capital expenditures, and TSMC will not be able to supply equipment at a discount — even to Apple. Likely due to the rising production costs, the American corporation will have to raise iPhone prices.

The report states that A20 chips could cost $280 each. In 2024, DigiTimes sources reported that A18 chips used in the iPhone 16 cost only $45. If these figures are accurate, the processors for the iPhone have increased in price by more than six times over two years.

The authors of China Times believe that Apple is highly likely to raise smartphone prices in 2026. It may also equip only the flagship iPhone 18 Pro and 18 Pro Max models with the latest 2-nanometer processors.