iPhone 18 Price Increase Expected Due to Advanced Chip Costs
- tech360.tv
- 2 days ago
- 2 min read
Apple’s upcoming iPhone 18 series is likely to feature a next-generation A20 processor. A new report suggests this chip will be significantly pricier than its predecessor, potentially impacting the phone’s overall cost.
A report from UDN.com, commented on by Apple Insider, indicates the A20 chip may cost up to USD 280 per unit. This figure represents an 80% increase compared to the prior generation’s chip.
The A20 chip uses a more advanced 2-nanometer manufacturing process. This process is expected to deliver lower energy consumption, greatly increased performance, and enhanced AI processing capacity.
However, the industry anticipates that mobile phone processors made with a 2-nanometer process will be “the most expensive mobile phone chip in history.” The A20 is noted as more than 80% more expensive than the A19.
Simultaneously, recent soaring memory prices may further contribute to a sharp rise in smartphone prices. This combination of factors points towards a potential increase for the iPhone 18.
Historically, Apple has accepted higher early manufacturing costs to secure access to leading-edge nodes. Previous transitions, such as 5-nanometer and 3-nanometer, delivered competitive advantages without cost increases of this magnitude.
Despite the potential price hike, the benefits from the A20 chip are expected to be substantial. Chip upgrades often bring modest efficiency improvements, but the 2-nanometer represents a more disruptive shift.
The industry-wide move to 2-nanometer technology suggests that price increases may not be exclusive to Apple products.
Apple’s iPhone 18 series is expected to feature the A20 processor.
The A20 chip could cost up to USD 280, an 80% increase over the prior generation.
The 2-nanometer process of the A20 offers lower energy use, improved performance, and enhanced AI capabilities.
Source: FORBES