A report from DigiTimes claims that Apple will reportedly increase the price of its upcoming iPhone 13 lineup, in order to compensate for the higher prices being passed along by its leading chip supplier TSMC.
The report says TSMC is planning to increase the prices of its chips, which will impact several companies, including Apple.
Costs could increase by as much as 20% for its “advanced and mature process technologies.” The new changes are expected to go into effect in January.
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. The price adjustments will also be for the orders scheduled to be fulfilled starting December.
For TSMC’s advanced sub-7nm process technologies, quotes will rise by 3-10%, the sources indicated. Apple, the biggest client of TSMC with its orders accounting for over 20% of the foundry’s total wafer revenue, will experience a 3-5% price hike, the sources said.
To compensate for the higher costs, Apple is said to be considering a price increase on the upcoming iPhone 13 lineup to “mitigate the impact of rising costs on their profitability.”
While facing rising production costs, brand vendors may end up passing the costs onto end-market customers, the observers said.
Apple is likely to set higher prices for its upcoming iPhone and other series, according to market sources. 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.
The 2021 iPhone lineup is expected to debut in September. The new handsets are expected to boast a number of new features, including new camera features, a 120Hz display, an A15 chip, 1TB of storage, and more.