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Looming increases in the cost of manufacturing components could see Apple raise its “iPhone 13” prices to compensate.
It has previously been reported that processor maker TSMC will prioritize Apple and the auto industry over other companies as the global chip shortage continues. However, it is believed that TSMC is on the verge of raising its prices – and now Apple is expected to pass that increased cost on to consumers for the next iPhone.
According to Digital hours, unspecified sources in the supply chain indicate that TSMC will soon increase its quoted prices for technologies below 7nm. The “iPhone 13” range would be based on a 5nm processor, the A15.
Overall, TSMC reportedly notified customers of increases of up to 20%. However, processors below 7nm are expected to experience increases of between 3% and 10%.
Supply chain sources expect Apple, which accounts for one-fifth of TSMC’s processor business, to experience price hikes of between 3% and 5%.
In any case, the increases should come into effect from January 2022. Rather than increasing the price of “iPhone 13” only, Apple should then start with higher prices.
The current iPhone 12 is also based on a 5nm processor, so if Apple keeps any models in its lineup, these could likely face price increases at some point. Currently, the iPhone 12 would not experience the usual slowdown in sales that is typical before a relaunch.
Digital hours has a bad track record for predicting Apple’s plans, but its track record for reporting from industry sources is much stronger.
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