Home / Technology / 2026 iPhones: Price Hike on the Horizon?
2026 iPhones: Price Hike on the Horizon?
3 Jan
Summary
- New 2nm A20 chip for 2026 iPhones significantly increases production costs.
- TSMC wafer prices for the new chip are expected to be substantially higher.
- Apple may pass increased silicon costs to consumers via higher iPhone prices.
The upcoming 2026 iPhone models are facing potential price hikes due to escalating chip manufacturing expenses. Apple's planned 2nm A20 chip, slated for the iPhone 18 series and other devices launching in September 2026, is driving these cost concerns. The advanced fabrication process required for such a chip necessitates significantly more expensive materials and production techniques.
Reports indicate a substantial jump in wafer costs compared to current 3nm technology, which itself is already costly. This surge in expenses for the 2nm chips is attributed to the technical complexities involved in creating smaller, more powerful processors. Consequently, the cost of the A20 series chips is expected to be considerably higher than predecessors like the A18 Pro.
Apple is reportedly contemplating a difficult decision: absorb the increased silicon costs, thereby reducing profit margins, or implement higher retail prices for the 2026 iPhone models. Consumers may therefore see the cost of new iPhones rise to reflect these advanced manufacturing expenditures.
