iPhone 18 expected to cost more than the upcoming iPhone 17, here's why

Apple is expected to increase the price of the iPhone 18 after rumors indicate it will be adopting the bleeding-edge 2nm process from TSMC.

iPhone 18 expected to cost more than the upcoming iPhone 17, here's why
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TL;DR: Apple's iPhone 18 will likely cost more due to adopting TSMC's expensive 2nm A20 chip and potential tariff impacts from US-China trade tensions. Although iPhones are temporarily exempt from tariffs, price hikes could occur if exemptions end, possibly pushing costs well above the usual $999 retail price.

Apple has been hit hard by President Trump's tariffs on China, as that is where the company manufactures most of its products. Now, reports indicate the iPhone 18, scheduled to launch next year, won't be the same price as the upcoming iPhone 17 - it will be more.

iPhone 18 expected to cost more than the upcoming iPhone 17, here's why 651651

Apple is rumored to be adopting TSMC's 2nm manufacturing process for the A20 chip, according to Digital Chat Station, which is a claim that has been previously backed up by analysts Ming-Chi Kuo and Jeff Pu. With the adoption of this new bleeding-edge chip will come a price hike at least on the production side, as the chip is much more expensive to manufacture than the current generation. The question is whether Apple is willing to eat into its profits or make consumers pick up the bill for the performance increase.

Moreover, there is President Trump's looming tariffs, which Apple could use as the "perfect" excuse to increase the price of its iPhone from the long-time-standing $999 price point. As for the tariffs, President Trump recently added Apple's iPhone to the list of products exempt from the tariffs, which includes phones, computers, and chips. However, these exemptions are temporary and could change over the coming weeks depending on how negotiations between the US and China go.

Without these exemptions, estimations have pegged the price of an iPhone to jump as high as $2,150, if the full 145% tariff on China is maintained.