iPhone: Prices may increase in 2023   

And this is the reason

As it seems, even iPhones will probably not be unaffected by the price increases that we have seen lately in almost every consumer good, from simple everyday shopping to technology products, such as consoles and PC hardware. In particular, a new report is making the rounds on the internet and points out that soon Apple will have to dig deeper into its pocket to procure one of the most basic components necessary for its smartphones.

Going into details, the Economic Daily News reported a few days ago that TSMC, the Taiwanese company that manufactures the A16 Bionic and the rest of the iPhone processors, intends to increase the prices for the production of the chips from 2023 . Initially it is noted that Apple fought back, wanting to use its bargaining power to reject the new prices. However, despite being one of TSMC’s biggest customers, things ultimately did not go as he would have liked.

According to a new report from the same media, Apple has finally agreed and will accept TSMC’s price increases for its chips. This means that for chips made on up to 8-inch wafers, prices will increase by 6%, while for chips made on 12-inch wafers, prices will increase by 5%.

Price increase or reduced profit margin?

The possible scenarios are therefore two: Either Apple will absorb this increase in the price of raw materials, without ever becoming visible to consumers, or the prices of iPhones will increase sometime in 2023, when TSMC implements its new pricing policy.

For the record, the A16 Bionic processor is one of the most expensive parts of an iPhone 14 Pro Max, costing Apple around $110, which is 2.4 times more than its predecessor, the A15, which is also available in the iPhone 14 and iPhone 14 Plus. Therefore, even a seemingly small percentage increase is capable of significantly affecting the company’s finances.

The Samsung solution

For now, the first information wants Apple to work with TSMC again for the next A17 Bionic chip, which will be the first of 3nm. However, if Apple wants to avoid inflated prices, maybe Samsung can provide the solution.

Yes, the Korean company may be competing against the iPhone with its Galaxy smartphones, but the two giants have worked together before. In particular, Samsung manufactured the A-series chips up to the iPhone 6S. Then, from the iPhone 7, Apple started its exclusive collaboration with TSMC. However, Samsung has been making efforts lately to compete with TSMC, especially in 3nm processors, so perhaps a change of camp from Apple again would benefit both companies