Prepare your pocket: iPhone 13 may be more expensive to offset increased production costs

The report says that TSMC is responsible for the increase in courses, which should increase their prices by up to 20%, so Apple would pass the increase on to iPhone 13 prices.

TSMC has already notified customers of price increases of up to 20% for its advanced and mature process technologies, with the new prices expected to take effect from January 2022. Price adjustments will also be for orders scheduled for be fulfilled from December.

According to sources, TSMC’s advanced lithography chips less than 7nm, quotes will increase by 3% to 10%. Apple, TSMC’s biggest customer with its orders representing more than 20% of the foundry’s total wafer revenue, will see a price increase of 3% to 5%, according to the sources.

As such, the price of the iPhone 13 is expected to grow by 3% to 5% depending on the increase in TSMC. On the other hand, other factors can also influence these numbers, such as demand and prices of other components, which so far do not seem to influence this equation significantly.

The possibility of the increase is emphasized in another part of the report:

While facing rising production costs, branded suppliers may end up passing the costs on to end-market customers, observers said.

Apple is likely to set higher prices for its next iPhone and other series, according to market sources. Several branded notebook vendors, which have increased their prices by 5-10% so far this year, continue to explore ways to mitigate the impact of rising costs on their profitability.

Therefore, it is possible that these increases not only affect the iPhone 13, but also other products that have components supplied by TSMC and other manufacturers, such as MacBooks and iPads, for example.

The iPhone 13 is expected to be announced by Apple at an all-digital event on September 17th, along with it we should also see the new AirPods 3 and Apple Watch Series 7.