The iPhone 18 may end up with a bigger price tag than its predecessors. Apple’s planned adoption of a cutting-edge 2nm manufacturing process for its next-generation chipset could substantially increase production costs, potentially leading to higher prices for the iPhone 18 series when it launches in September 2026.
According to reports from Taiwan, the upcoming processor, expected to be branded as the A20 or A20 Pro, will rely on advanced 12-inch wafers composed of around 100 layers. This technological leap, while promising improved performance and efficiency, comes with a steep price tag that may force Apple to either absorb reduced profit margins or pass the costs on to consumers.
Apple escalating chip production costs
Apple’s long-time manufacturing partner, Taiwan Semiconductor Manufacturing Company (TSMC), is preparing to raise prices for its advanced silicon wafers. 2nm wafers are projected to cost approximately $30,000 each, which is a significant jump from the $20,000 price tag for the current 3nm process.
This wafer price increase translates directly to higher per-unit costs for the chipset. Reports estimate the A20 or A20 Pro could cost Apple close to $280 per processor, which is roughly an 87% surge from the estimated $150 for the A19 Pro, and several times higher than the roughly $50 associated with the A18 Pro.
In contrast, rival Samsung is positioning itself aggressively by pricing its 2nm Gate-All-Around (GAA) wafers at around $20,000, about 33% lower than TSMC’s rate and comparable to TSMC’s 3nm pricing. Note that TSMC is believed to offer slightly better production yields than Samsung.
A20’s impact on iPhone 18 lineup and pricing
The A20 chipset is tipped to power four premium models in the iPhone 18 lineup, i.e., the iPhone 18 Pro, iPhone 18 Pro Max, the successor to the rumoured iPhone Air, and the iPhone Fold.
With these elevated component costs threatening to squeeze margins, Apple faces a critical decision ahead of the 2026 launch cycle. The company could opt to absorb the additional expenses to maintain competitive pricing amid rivalry from Samsung and others, or it could increase retail prices for the new flagships, potentially affecting consumer demand in a price-sensitive market.
