Apple is expected to launch the iPhone 18 Pro series later this year, but early signals suggest buyers may have to pay more than before. A new report indicates that rising semiconductor costs tied to Apple’s next-generation A20 Pro chipset could push the prices of the iPhone 18 Pro and iPhone 18 Pro Max higher than the current lineup.

According to Taiwanese publication Money.udn, the increase is linked to Apple’s move to TSMC’s cutting-edge 2nm manufacturing process. While the transition promises notable gains in performance and power efficiency, it also comes with a significantly higher production cost, which could directly affect retail pricing.

A20 Pro Chip to Power Apple’s Top-Tier Devices

Apple’s A20 Pro SoC is also believed to drive the iPhone 18 Pro, the iPhone 18 Pro Max and its rumoured foldable iPhone in September 2026. The successor to the iPhone Air is also believed to have the same processor and a possible early-2027 release date. And the standard model of the iPhone 18 and iPhone 18e might pack in the non-Pro A20 chip as well.

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It sounds like both the A20 and the A20 Pro would leverage TSMC’s 2nm technology, which is obviously a big jump from the 3nm-based A19 series. This change is supposed to result in higher performance and superior energy efficiency, but it also inflates manufacturing costs.

Why Chip Costs Are Rising Sharply

There are reports which suggest that for one 12-inch 2nm silicon wafer, the cost has now gone up to at least $30,000, or approximately ₹27 lakh. By contrast, a 3 nm wafer costs approximately $20,000 or ₹18 lakh. Such a dramatic increase in wafer pricing trickles down to Apple's costs of producing their chipsets.

The A20 and A20 Pro processors are estimated to cost Apple close to $280 per unit, or around ₹25,200. That represents an 87 per cent jump compared to the $150 A19 Pro chip and nearly six times the reported $50 cost of the A18 Pro. Such a surge puts pressure on Apple’s margins, especially as the company also faces potential memory supply constraints.

Tough Pricing Decisions Ahead for Apple

As production costs rise, Apple could be stuck between eating the extra cost of materials or passing it on to consumers. Now, however, a price increase for Apple’s iPhone 18 Pro series is looking more likely than ever, particularly as the company makes strides to position its Pro handsets as premium, cutting-edge devices.

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Compounding the cost pressure, Apple’s iPhone 18 and 18 Pro models will also feature significant hardware and design updates. These consist of a punch-hole selfie camera with under-display Face ID, a new single-tone colour design and an adaptive aperture main camera for better photography.

What This Means for Buyers

For a frame of reference, the iPhone 17 Pro is available at ₹134,900 in India and the iPhone 17 Pro Max for a slightly higher price of ₹149,900. If Apple passes the cost of the better chip on to consumers, this also stands a chance of being comfortably overshadowed by the iPhone 18 Pro range.

Though Apple hasn’t announced any price changes at this time, the prospect of costly 2nm chips and possible component shortages being joined by aggressive hardware refreshes could make the next generation of iPhones a slight premium. Potential buyers may want to take this into account as Apple’s 2026 flagship debut nears.