Apple is expected to launch the iPhone 18 Pro series later this year, and early reports suggest the new flagship models may come with a price increase. According to Taiwanese outlet Money.udn, higher production costs linked to TSMC’s advanced 2nm manufacturing process for the upcoming A20 Pro chipset could drive the hike. As TSMC remains Apple’s key chip supplier, the shift to cutting-edge semiconductor technology may directly impact the pricing of the iPhone 18 Pro and iPhone 18 Pro Max.
Apple’s 2nm A20 could push iPhone 18 prices up in 2026
– Apple is expected to adopt a 2nm A20/A20 Pro chip for its 2026 iPhone lineup (iPhone 18 Pro, 18 Pro Max, successor to iPhone Air, and second-gen iPhone Fold).
– TSMC reportedly plans to raise 2nm wafer prices to about…
— Premkumar Nandagopal (@premkn) January 3, 2026
Apple’s upcoming A20 Pro chipset is expected to power the iPhone 18 Pro, iPhone 18 Pro Max and the rumoured foldable iPhone, all of which are likely to launch in September 2026. The next-generation iPhone Air is also tipped to use the same processor but is expected to arrive in early 2027. Meanwhile, the base iPhone 18 and the iPhone 18e are said to feature the standard A20 chipset.
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According to reports, both the A20 and A20 Pro will be manufactured using TSMC’s advanced 2nm process, promising notable gains in performance and power efficiency over the current 3nm-based A19 series. However, the transition comes at a steep cost, with the price of a 12-inch 2nm silicon wafer reportedly rising to around $30,000 (roughly ₹27 lakh), compared to about $20,000 (₹18 lakh) for 3nm wafers.
This jump in fabrication costs could significantly impact Apple’s chipset expenses. The A20 and A20 Pro are estimated to cost nearly $280 (around ₹25,200) per unit, marking an 87 per cent increase over the $150 A19 Pro and nearly six times the cost of the $50 A18 Pro processor. Such a sharp rise could put pressure on Apple’s overall margins for the iPhone 18 lineup.
As a result, Apple may face a tough decision on whether to absorb the higher costs or pass them on to consumers through higher prices, with a potential memory shortage adding further strain. Beyond the chipset, the iPhone 18 Pro models are also tipped to receive major design upgrades, including a punch-hole selfie camera with under-display Face ID, a new single-tone colour finish, and a variable aperture main camera. While pricing remains undecided, the current iPhone 17 Pro starts at ₹1,34,900, and the iPhone 17 Pro Max is priced at ₹1,49,900, setting the baseline for what could be a more expensive next generation.
