Thursday, Aug 26, 2021, 16:47 Hardware

The Next iPhone May Be Getting Even More Expensive – TSMC Raises Prices

When Apple presents the iPhone 13 to the public for the first time in just a few weeks, there definitely won't be a decrease in price from the previous model – the iPhone 12. Of that, we can be certain, as are the industry experts. A recent report even indicates that Apple plans to raise the price even further. There aren't any concrete details concerning the iPhone 13's price but in the past, price increases have averaged at around US$50. All in all, Apple's not intentionally increasing an already seemingly endlessly increasing-price margin – rather, the price increase this time comes as a result of the current tense situation on the chip market.

Industry Leader TSMC Now Dialing Things Up A Notch
Apple's primary production partner and current industry leader in the world of chip production has announced plans to raise prices – by no more than 20%. Due to the "advanced nature" of the production process, the chip manufacturer is now taking advantage of the opportunity to raise prices. Customers of TSMC in the past have always been able to rely on the company's high reliability and technological superiority. Amongst other things, Apple has profited considerably from cooperation with TSMC – in fact, current Macs and iPhones have TSMC's advances in the industry to thank for their powerful performance.

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Prices To Rise For All Providers
According to DigiTimes, Apple will now have to pay anywhere from 3-5% more for chips from TSMC. Obviously, Cupertino doesn't want to suffer any loss to profit margins and so costs are increasing for Apple customers as well. In general, tech prices increased across the board last year as providers were forced to choose between earning less money per sale or reprinting the price tags. In the case of Apple, there's not too much concern about a slight rise in price affecting profit margins – for starters, Apple's a big TSMC customer and will be prioritized and is not likely to experience any shortages, second – Apple's customer base tends to be a little less price-sensitive than most.

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