Outlook Business Desk
Apple’s next iPhone series, the iPhone 18, is expected to bring multiple surprises, including new features, improved performance, and potentially higher prices than the iPhone 17 series.
The A20 System-on-Chip (SoC) for the iPhone 18 series will cost significantly more than the previous A19 chip, potentially raising the overall phone price, according to China Times, cited by NDTV profit.
Apple’s chip supplier, Taiwan Semiconductor Manufacturing Company (TSMC), has informed the tech giant that the new 2nm A20 chip may be over 50% costlier than the earlier 3nm A19 chip.
The iPhone 18 series’ A20 processor uses advanced 2-nanometer technology, promising major performance gains but also significantly raising production costs compared with the iPhone 17 series.
The A18 chip in the iPhone 16 contributed $45 to the total bill of materials of $416. Apple sold the phone at $799, including its profit margin.
If the A20 chip cost rises 50% as predicted, Apple may pass the added expense to consumers to maintain profit margins or adjust costs elsewhere.
Meanwhile, Apple may alter its launch strategy for the iPhone18 series. According to multiple reports, the base model is reportedly delayed until 2027, while other variants could launch earlier next year.