Apple Reportedly Hiking iPhone 13 Costs to Compensate for Increased Chip Costs

Apple is reportedly looking to increase the price tag on the iPhone 13 range to mitigate the impact of rise in chip-making costs.

According to a new report from DigiTimes (via MacRumors), Taiwan Semiconductor Manufacturing Company (TSMC), Apple’s leading chip supplier, is reportedly planning to increase the costs of its chip production.

“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 DigiTimes report explains.

This price increase will reportedly impact TSMC customers, including Apple. While the new increased pricing is reported to come into effect in January 2022, Apple will reportedly sell its iPhone 13 series at a higher price tag to minimize the impact on profitability, explains DigiTimes.

Apple is one of TSMC’s biggest clients, with its orders reportedly accounting for over 20 percent of the company’s total revenue from its chips. Apple will reportedly bring a 3-5 percent hike in iPhone 13 prices due to these changes as TSMC’s advanced sub-7nm process technologies quotes may rise by 3-10 percent.

DigiTimes doesn’t go into the reasons why TSMC is increasing its prices, but the increased demand for electronic components is likely to be one of the main reasons, coupled with constrained supplies due to the ongoing pandemic.

The iPhone 13 range is rumoured to see considerable improvements in cameras, with the top-end models expected to add ProRes support for videos and portrait mode videos, among other improvements.