iPhone 18’s Price Rise Might Surprise You

In the realm of weekly tariff updates, there’s an additional concern that could lead to increased prices for Apple’s iPhones: the transition to TSMC’s 2nm process node. A recent leak suggests that Apple, along with MediaTek and Qualcomm, is preparing to adopt this 2nm process, potentially raising the costs of some of the leading smartphones.

This not-so-encouraging news comes from the notable leaker Digital Chat Station on Weibo. The source indicates that Apple, Qualcomm, and MediaTek are anticipated to move to TSMC’s 2nm process by 2026. While this development is promising from a performance standpoint, it’s a bit troubling when it comes to expenses. The 2nm process from TSMC promises enhanced efficiency and overall better performance, but it will also be pricier compared to the 3nm and 5nm versions. Consequently, the leaker warns, “We might see a new wave of price hikes for upcoming phones.”

Although reports state that Apple won’t implement the 2nm process for the iPhone 17, many expect the company to integrate it into the iPhone 18 series. Analyst Ming-Chi Kuo initially suggested that this advanced, speedy 2nm node would be exclusive to Apple’s high-end models, starting with the iPhone 18 Pro.

Nevertheless, according to a report by Wccftech, TSMC’s production yields have exceeded initial expectations, reaching around 70% in January. This indicates there will be a larger supply of 2nm chips available. For consumers, this is mostly positive news. It implies that the entire iPhone 18 series could benefit from a faster, more efficient chip, ultimately enhancing performance and battery life.

On the flip side, should Apple face higher costs to obtain these process nodes from TSMC, there is a possibility of increased prices across their product range.

Wccftech delves deeper into the implications for Apple’s pricing strategy. The publication opines that Apple is unlikely to lower its profit margins merely to maintain current prices, which means that iPhones utilizing a 2nm design could see significant price increases by 2026. Furthermore, Apple may also need to navigate import tariffs. If reciprocal tariffs are enacted, the iPhone 16 Pro might be priced around $1,400 instead of its current $999.

The latest iPhones may manage to avoid substantial price hikes (or none at all), but it seems that consumers should brace for increased costs in subsequent generations. As always, it’s important to note that nothing is confirmed until Apple makes an official statement, and with the iPhone 18 launch over a year away, much of this information remains speculative.