The era of 2-nanometer chips is just around the corner, and TSMC, Apple’s main supplier, is preparing to be the first to implement this technology with the anticipated launch of the iPhone 18 Pro and a foldable iPhone in September of next year.
This transition represents a significant advancement, as the manufacturing of chips at a 2 nm node will allow for more transistors to be incorporated in the same space, thus improving performance and energy efficiency.
However, this promising technological change comes with a significant increase in prices. TSMC has announced that manufacturing costs for its most advanced processes will rise by between 8 and 10%, and for 2 nm chips, the increase could reach up to 50% compared to 3 nm chips.
A prohibitive price increase for customers
The unit cost of these chips is estimated to be around 280 dollars, which could impact the final prices of Apple’s new devices.
The impact of these increases in production costs could extend to Apple’s entire product line, including the iPhone 18, which, although they will start being produced at higher prices, it has not yet been decided whether these increases will be passed on to consumers.
In this regard, rumors suggest that there could be an increase in retail prices, especially for the foldable iPhone, which is estimated to be around 2,000 euros or dollars.
Despite the challenges posed by this cost overrun, Apple has a strong negotiating position with TSMC, which means that the impact on its margins could be mitigated. The company could also benefit from the new chip architecture in its ‘M’ series, although there is still no clarity on when they will be available.