Apple just raised prices for the iPhone 17 lineup, but next year’s models might climb even higher.
According to a new report from China Times, the company’s upcoming A20 chip will move to a next-generation 2-nanometer process, and that leap in technology could come with a major jump in cost.
If the numbers are accurate, this could be the most expensive chip Apple’s ever put inside an iPhone.
The A20 Chip: Smaller, Faster, and Much Pricier
The A20 chip, expected to debut inside the iPhone 18 Pro models next fall, will reportedly be built using TSMC’s new 2-nanometer process, which is the cutting edge of chip manufacturing.
Going smaller means better efficiency, higher performance, and lower power draw. But it also means Apple will be paying a lot more for each one.
China Times claims that TSMC has raised its prices by at least 50% compared to the current 3-nanometer chips used in the iPhone 17 Pro’s A19 Pro processor.
That’s a massive jump, and TSMC isn’t budging on price. The company has invested billions into developing the new process, and according to the report, it’s not offering Apple the usual discounts or negotiations it might in previous years.
Why 2-Nanometer Matters
This new process is a big deal. Chips built on 2nm tech can pack more transistors into a smaller space, which means faster speeds and better battery life without generating as much heat.
It’s also part of Apple’s ongoing effort to stay years ahead of its Android competition. Moving to 2nm before Qualcomm, MediaTek, or Samsung gives Apple a clear edge in performance, but that kind of early access doesn’t come cheap.
Could the iPhone 18 Get Another Price Bump?
So what does that mean for next year’s iPhones?
Apple doesn’t typically share production costs, but if chip prices rise as much as this report suggests, those expenses have to land somewhere. Either Apple absorbs the hit (cutting into margins), or it passes it along to customers, possibly through higher base prices or smaller feature upgrades elsewhere.
This year, the standard iPhone 17 held its $799 price and actually sold better than expected, especially in China. If demand stays high, Apple could see an opportunity to nudge that price upward next year while keeping the Pro models even more premium.
That said, we’re still nearly a year away from the iPhone 18 lineup. Apple could always adjust its strategy, maybe skipping certain upgrades or limiting the 2nm chip to Pro models to balance costs.
Closing…
Apple’s A20 chip is shaping up to be a technical leap, but also a financial one.
If TSMC’s 2-nanometer process really costs 50% more, Apple will have to make some tough calls: raise prices, trim margins, or hold back features to balance it all out.
Either way, the iPhone 18’s brain looks like it’ll be the most powerful, and possibly the priciest, one yet.
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