Recent leaks suggest a potential price increase for the iPhone 18 lineup due to Apple’s anticipated switch to TSMC’s advanced 2nm process node. This shift, expected in 2026, involves not only Apple but also major chip manufacturers like MediaTek and Qualcomm. While the 2nm technology promises significant performance and efficiency gains, it comes at a higher cost than the current 3nm and 5nm processes. This has led industry insiders to predict a ripple effect on smartphone prices.
TSMC’s 2nm process is poised to deliver substantial improvements in performance and power efficiency, benefiting future smartphones. However, the increased production cost associated with this cutting-edge technology is likely to be passed down to consumers. Leaker Digital Chat Station on Weibo indicates that this transition could trigger another wave of price increases for new phones in 2026.
Initially, analyst Ming-Chi Kuo projected that the 2nm chip would be exclusive to Apple’s high-end models, starting with the iPhone 18 Pro. However, recent reports suggest that TSMC’s 2nm yields have exceeded expectations, reaching approximately 70% in January. This improved production capacity opens up the possibility of the entire iPhone 18 lineup benefiting from the enhanced 2nm chip, leading to better performance and potentially longer battery life across all models.
The back of the Apple iPhone 16 Pro Max.
While this wider adoption of the 2nm chip is good news for consumers in terms of performance, it also carries implications for pricing. If Apple incurs higher costs from TSMC, it’s likely to adjust its pricing strategy accordingly. Wccftech speculates that Apple is unlikely to compromise its profit margins, suggesting that the iPhone 18 series could see a significant price hike in 2026. Additional factors, such as potential import tariffs, could further exacerbate the price increase. For instance, reciprocal tariffs could reportedly push the price of the iPhone 16 Pro up to $1,400 from its current $999.
While the current iPhone generation might escape significant price adjustments, future generations, especially those incorporating the 2nm process, are more likely to see higher price tags. It’s important to remember that these predictions are based on industry speculation, and nothing is confirmed until Apple makes an official announcement. With the iPhone 18 release still over a year away, much can change in the dynamic landscape of technology and economics.