Overview

• TSMC's advanced 2nm chip production, set for the iPhone 18 series, is significantly more expensive than previous nodes, potentially driving up costs by 70%.
• Newly imposed US import tariffs on electronics further increase Apple's production expenses, adding to pricing pressures.
• Analysts suggest Apple will preserve profit margins by shifting these costs to consumers, with price increases likely affecting both current iPhone 16 inventory and the upcoming iPhone 18 lineup.
• Improved 2nm chip yields (60–70%) could allow Apple to expand the A20 chipset to the entire iPhone 18 series, rather than limiting it to Pro models.
• Apple is also reportedly preparing to launch its first foldable iPhone in 2026, with an estimated price exceeding $2,000.