Highlights
- Apple’s iPhone 18 series may cost more due to the expensive new A20 chip built on TSMC’s 2nm process, which could be 50% pricier than its predecessor.
- The A20 marks a shift from the 3nm A19 chip used in iPhone 17, offering better performance and efficiency but increasing the bill of materials significantly.
- iPhone 18 Pro and Pro Max are expected in late 2026, while the base iPhone 18 and iPhone 18e may launch in early 2027.
Apple’s upcoming iPhone 18 series may arrive with a higher price tag compared to the iPhone 17 lineup. This speculation is based on reports about the new A20 chip built on TSMC’s next-generation 2nm process. Reports suggest that Apple’s chip supplier TSMC has informed clients that the cost of 2nm chips will be significantly higher than current 3nm models. And when we say higher, it could go up potentially by 50% or more.
Apple iPhone 18 Series Pricing Could Rise
According to a report from China Times (machine-translated from Chinese), the 2nm A20 SoC that will power the iPhone 18 series is set to be much more expensive than the A19 chip used in the iPhone 17 lineup. TSMC’s new 2nm process is expected to deliver major performance and efficiency improvements but also comes with higher production costs.
The A19 chip, which powers the iPhone 17 series, was developed using TSMC’s 3nm N3P process, while the upcoming A20 will mark Apple’s move into the 2nm era. It will be a generational leap that could drive up the overall bill of materials (BOM).
A previous DigiTimes report revealed that the BOM for the iPhone 16 (256GB) was $416 with the A18 chip costing $45. The phone retailed for $799, factoring in Apple’s profit margin. When Apple upgraded to the A19 chip built on TSMC’s 3nm N3P process, the chip cost reportedly rose by 16% to 24%, though Apple maintained the same $799 price tag for the iPhone 17 (256GB).
However, if the A20 chip price indeed increases by around 50%, Apple may need to adjust pricing to avoid a significant hit to profit margins unless it finds cost efficiencies elsewhere in production. This means the iPhone 18 series could debut at a higher starting price compared to its predecessor.
Meanwhile, TSMC’s new pricing structure for the 2nm process will reportedly affect all its customers, not just Apple. The upcoming Snapdragon and MediaTek chips built on the same 2nm node could also become more expensive, potentially driving up prices for flagship Android smartphones as well.
That said, this remains speculative for now and Apple could still explore ways to offset the added cost of chip manufacturing.
iPhone 18 Series Launch Timeline
Apple is also expected to stagger the iPhone 18 series launch across two phases.
Reports suggest that the iPhone 18 Pro and iPhone 18 Pro Max will arrive in the second half of 2026, while the base iPhone 18 will debut later in the first half of 2027. The launch will come alongside the iPhone 18e model.
FAQs
Q1. Why might the iPhone 18 series be more expensive than previous models?
Answer. The iPhone 18 series could see a price hike due to Apple’s shift to the new A20 chip built on TSMC’s 2nm process, which is reportedly up to 50% costlier than the current 3nm chips.
Q2. What performance upgrade is expected with the A20 chip?
Answer. The A20 chip, based on TSMC’s 2nm technology, is expected to deliver significant improvements in performance and power efficiency compared to the A19 chip used in the iPhone 17 series.
Q3. When will the iPhone 18 models launch?
Answer. Apple is expected to stagger the launch: iPhone 18 Pro and Pro Max may arrive in late 2026, while the base iPhone 18 and iPhone 18e are likely to debut in early 2027.