Report suggests iPhone 13 will be more expensive due to increased production costs
Apple is said to be considering increasing the prices of this year’s four new iPhone models to compensate for rising production costs, according to a report from DigiTimes, which cites increased costs of chip production as the cause of this year’s rumored price hike.
According to the report, iPhone chip supplier TSMC is planning to increase the costs of its chip production by 3% and 10% beginning in January for its sub-7nm processors, with Apple said to be looking at increasing the cost of future iPhone models and offsetting the increased costs by passing them to end consumer to “mitigate the impact of rising costs on their profitability.”
“TSMC has reportedly notified customers of price increases by as much as 20% for its advanced and mature process technologies, with the new prices set to be effective starting January 2022,” reads the report. “The price adjustments will also be for the orders scheduled to be fulfilled starting December.”
“Apple is likely to set higher prices for its upcoming iPhone and other series, according to market sources,” says DigiTimes. “Multiple notebook brand vendors, which have raised their prices by 5-10% so far this year, continue to explore ways to mitigate the impact of rising costs on their profitability.”
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Apple is expected to announce the iPhone 13 in the coming weeks. Unlike last year, when Apple gave the iPhone a full refresh with an iPhone 4-style squared-edged design, this year’s four new iPhone 13 models are expected to have relatively minor visual changes compared to the current iPhone 12 lineup, with more significant changes rumored for next year’s iteration.
Reports suggest the all four iPhone 13 models will feature upgraded displays, larger batteries, a shrunken notch, expanded support for mmWave 5G, and a more efficient A-series chip. The new devices are being described as a “classic Apple S model,” despite carrying the iPhone 13 name.