iPhones are getting more expensive. Apart from China and the United States, Apple has increased the price of the iPhone 14 in almost every country. And it looks like customers in China and the US will soon be paying more.

Two reports this week revealed how the cost of iPhone production is increasing significantly, and will affect Apple in the short and long term.

Here and now, Nikkei Asia revealed that the production costs of the iPhone 14 have increased by almost 20% compared to the iPhone 13 models. The main culprits are the new Sony CMOS camera sensors, which increased by 50%, the chip A16 Bionic used in the iPhone 14 Pro and Pro Max, which at $ 110 is almost 2.5x more than the A15 used in the iPhone 13 Pro and the entry-model iPhone 14.

That last one helps explain why Apple stuck to previous-generation chips in the new iPhone base models for the first time. The unchanged iPhone 14 undoubtedly helped Apple support the iPhone 14 Pro in the short term, but that delays the problem because the base model of the iPhone 15 will carry the A16 in 2023. And more problems are on their way.

In a separate report, the Economic Daily News claimed that Apple has received new price increases from TSMC, the leading chip supplier, which will take effect from January 1, 2023. These prices are low, from 3- 6% of chip wafers, but they follow from a 20% price increase for TSMC in 2021 – the highest in ten years.

Therefore, it is difficult to see how Apple can continue to avoid inflation in China and the United States. The rest of the world has already paid the price in 2022, and in 2023 it is now inevitable that these two countries will too.


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