Apple Agrees to TSMC’s Price Hike Making iPhone 15 Series More Expensive

Even while Apple contributes 25% of TSMC’s income, the company is still vulnerable to rising chip pricing. According to a report, starting in 2019, customers of TSMC will be required to pay an increase of up to 6% due to the ongoing changes in the global economic landscape, which has compelled chip manufacturers to raise the price of various wafers.

The price increase, which might have impacted the release date of Apple’s next-generation bespoke silicon, including the A17 Bionic for the iPhone 15 Pro and iPhone 15 Ultra and the M3 for future Macs, was previously said to have been rejected by the California-based firm.

Apple has already disproved rumours that it would raise the price of the iPhone 14 Pro and iPhone 14 Pro Max this year. As you are all aware, the most recent premium models are available for $999.

Unfortunately, the story of the iPhone 15 Pro and iPhone 15 Ultra may be very different in 2023. In order to better differentiate between the less expensive iPhone 15 models and the more expensive ones and boost its margins, Apple is rumoured to introduce more exclusive upgrades for its top-tier iPhone lineup next year.

As a result, Apple may charge customers more thanks to the rumoured increase in TSMC’s chip price. In the upcoming months, we will learn whether Apple intends to absorb those wafer price hikes and pass savings onto customers.

TSMC’s 5nm technology shows immense potential which has led to it gaining multiple orders. | Image: TSMC

The forthcoming SoC, as well as the M3 for future Macs, are both rumoured to utilise TSMC’s second-generation 3nm technology. If Apple intends to price its iPhone 15 Pro and iPhone 15 Ultra at the same level as the iPhone 14 Pro and iPhone 14 Pro Max, it may force TSMC to digest those higher manufacturing costs or suffer a decline in profit margins for each high-end iPhone sold. 

For the time being, we advise readers who want to upgrade to the iPhone 15 Pro, iPhone 15 Ultra, or a future Mac to be ready to spend more when these devices are released in 2023.

Source: Economic Daily News

Muhammad Zuhair
Passionate about technology and gaming content, Zuhair focuses on analysing information and then presenting it to the audience.
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