Apple is facing increasing challenges in maintaining competitive prices for its iPhone lineup, as new economic pressures continue to mount. The company is already bracing for the impact of tariffs imposed by the Trump administration, which could push iPhone prices higher in the near future. However, a bigger price shock could be coming, as Apple’s primary chip supplier, TSMC, is planning a significant price increase for its next-generation 2nm chips.
The rising production costs of these advanced chips are expected to directly affect the price of the iPhone 18 models. According to leaks from Digital Chat Station on Weibo, TSMC will supply the new 2nm processors to Apple and others, and the steep increase in production cost is likely to be passed on to consumers.
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Earlier reports suggested that only the iPhone 18 Pro models would feature TSMC’s 2nm chips, offering significant performance and efficiency upgrades over previous generations. However, with manufacturing yields now improving to around 60-70%, analysts like Ming-Chi Kuo believe the entire iPhone 18 lineup could adopt this cutting-edge technology — but at a higher price.
Meanwhile, the looming threat of tariffs could further inflate prices. Industry speculation suggests that the upcoming iPhone 16 Pro’s base price could rise from $999 to $1,400 if reciprocal tariffs are implemented. Whether Apple will absorb these costs or pass them on to the buyer depends on how much stock it has reserved for the U.S. market.
If demand outpaces Apple’s inventory, the company might have no choice but to increase prices sooner rather than later. As Apple prepares to launch new devices — including its long-rumored foldable iPhone, which is expected to cost over $2,000 — these combined factors could redefine premium smartphone pricing.
