A new report from DigiTimes suggests iPhone 13 buyers could face the highest prices that we’ve seen on the iPhone due to increasing costs from TSMC, the company producing Apple’s chips (via MacRumors).
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The report indicates that TSMC is raising its quotes by 3-10% for sub-7nm process technology, like those in the iPhone 13. The adjusted pricing will allegedly go into effect, starting with orders being fulfilled in December this year. There is no estimated markup to expect on the iPhone 13, but it’s unlikely that Apple would absorb this added cost particularly given how estimates from Counterpoint Research last year placed the component cost of the iPhone 12 as roughly 21% higher than the iPhone 11. The standard iPhone 12 was the only model that reflected this jump, moving from $699 to $799. Any component raising by 3-10% moves the needle for Apple with the iPhone given the volume we are talking about, but the processor is also one of the most expensive components in the phone. The display is typically the most expensive, another component expected to see an upgrade on the iPhone 13 Pro models to a 120Hz panel. Samsung slashing its prices on the Galaxy S21 lineup this year by $200 makes this a bit more of a challenging proposition for iPhone fans. Apple can probably afford to ignore its rivals, but the widening price gap won’t be a good look for them. One possibility is that Apple holds the price steady on the iPhone 13 mini and iPhone 13, with only the Pro models increasing to offset a higher component cost. Whatever Apple chooses, we shouldn’t have much longer until we find out as the iPhone 13 event is expected in mid-September.
