Entire iPhone 15 Production Cost To Increase By Up To 20 Percent, Price Hike Imminent

wccftech.com:

Apple will announce the iPhone 15 and iPhone 15 models later this year with a boatload of forward-facing changes. The iPhone 15 Pro models are expected to come with Apple's forthcoming A17 Bionic chipsets, which will be fabricated on TSMC's 3nm process. As for the standard models, we are expecting Apple to use the same chip as the current iPhone 14 Pro models. Rumor suggests that Apple's production cost for the iPhone 15 Pro will increase by 20 percent while the iPhone 15 by 12 percent. Would Apple increase the price of the iPhone 15 Pro models later this year?

We have previously reported that TSMC is struggling to keep up with Apple's demand for 3nm chips. We have also reported that Apple will use 3nm chips in its forthcoming iPhone models and Macs. The new chips will deliver enhanced performance capabilities and better battery life due to the less power-hungry nature of the SoC. A leaker on Twitter stated that the production cost of the iPhone 15 Pro models is expected to increase by 20 percent compared to the iPhone 14 Pro models. Additionally, he also claims that the production cost of the standard iPhone 15 models will increase by 12 percent as well.

According to an earlier report, TSMC is adhering to issues related to tools and yield, which is limiting the flow of volume production of the new chips. The leaker shares that the reason for the increased production cost is TSMC's fabrication "price hikes". With an increase in the price of materials and operations conjoined with issues pertaining to production, the entire iPhone 15 lineup production cost could increase by up to 20 percent.

If the company wants to keep its profit margins unscathed, it could redirect the increase in production cost to the end user. However,