iPhone 18 Pro, iPhone Air 2 May Get Costlier: Here’s Why Apple Could Raise Prices

Apple’s next iPhone lineup may come with higher prices, and reports suggest rising component costs are behind it. According to industry reports, models expected in 2026, including the iPhone 18 Pro and the successor to the iPhone Air, could see a price increase as Apple moves to newer chip technology. Also Read: iPhone Air Price Falls Under Rs 1 Lakh Ahead Of New Year! Is This the Best Time To Buy?

Rising Chip Costs In Focus

Apple is expected to shift to a 2nm manufacturing process for its next-generation iPhone chipsets, likely called the A20 and A20 Pro. These chips are said to be manufactured by TSMC, which has already begun preparing its 2nm production lines. Also Read: The Most Anticipated Smartphone Launches Of 2026 That We Are Excited For!

Reports from Taiwan suggest that 2nm silicon wafers are significantly more expensive than the ones used for current iPhone chips. A single 12-inch wafer used in 2nm production is said to cost around $30,000. By comparison, wafers used for 3nm chips reportedly cost closer to $20,000. The move to newer chip technology is expected to increase how much Apple pays for each processor used in its devices. Also Read: CRYP

What This Means For The iPhone 18 Lineup

Apple is tipped to launch multiple models in 2026, including the iPhone 18 Pro, iPhone 18 Pro Max, the next iPhone Air, and the first-generation foldable iPhone. These models are all expected to rely on the new 2nm chips.

As per reports, Apple could end up paying close to $280 per A20 or A20 Pro chip. That figure is notably higher than what the company currently pays for the A19 Pro processor. The cost difference becomes even more apparent when compared with older chips, where Apple reportedly paid a fraction of that amount.

Processors are among the most expensive parts of a smartphone, and a jump in chip costs increases overall manufacturing expenses.

Apple’s Options

According to the reports, Apple does not have many choices. It can absorb the higher chip costs, which would affect profit margins, or pass some of that cost on to buyers through higher prices. Apple has raised prices on flagship models in the past when component costs increased.

If the reports turn out to be accurate, higher-end models such as the iPhone 18 Pro and the next iPhone Air could be the first to see a price change.

Samsung’s Role In Comparison

For context, Samsung is said to be charging less for its 2nm wafer production. However, TSMC is believed to deliver better production yields. That remains a key reason Apple continues to rely on it for its most advanced chips.