The price of the iPhone 13 could be get a notable increase over that of the iPhone 12 series, thanks to rising chip manufacturing costs.
DigiTimes reported that its supply chain sources have claimed Apple supplier TSMC will ramp up its chip production costs meaning Apple will need to pay more for iPhone chips. And that’s likely to translate to more expensive iPhones, starting with the iPhone 13 that’s could be released on September 17.
TSMC builds Apple’s A-series mobile chips for iPhones and iPads, as well as chips for many other big electronics companies. It’s apparently notified its partners that the price of making sub-7-nanometer chips (which includes the A-series) will be going up. There will be up to a 20% increase from January 2022 for some of TSMC’s products. Apple however will reportedly only see a 3 – 5% increase.
As a result, it seems likely Apple will pass the increased cost on to the consumer, DigiTimes’ source noted. This would be unfortunate news for the price of the iPhone 13, considering the iPhone 12 series’ price was relatively stable. And some models actually dropped in price when compared to their iPhone 11 predecessors. Likewise this hike in chip production prices could be bad news for the rumored new iPad mini 6, as well as the follow-ups to the current iPad, iPad Air and iPad Pro.
However, with the prices only coming into effect from January, and impacting orders due to be fulfilled from September, there’s a change this may not apply to the iPhone 13. Production for the new iPhone has presumably already begun, and while it may continue into the new year, hopefully Apple has already locked in existing terms and prices with TSMC.
However, Apple may have forecasted for this price increase, so could have upped the price of the next iPhone to compensate for any increase in manufacturing cost. What this could mean for the iPhone 14 next year however is another matter.
Apple’s rumored to be offering only a modest set of upgrades for the iPhone 13, which could make that suggested price hike sting even more. While there are rumors of 120Hz displays for the Pro models, camera sensor and lens upgrades across the board, and of course a more powerful chipset, this doesn’t seem to be as big a leap forward as the iPhone 12 series was.
The latest rumors peg the iPhone 13 as launching on September 14, and going on sale shortly after on September 17. With many of the features likely already seemingly spoiled by the rumors, we’ll be awaiting the price reveal at the end of the launch event with bated breath.