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macrumors bot
Original poster
Apr 12, 2001
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Apple will need to pay more for the chips in its devices and may pass rising costs on to its customers, according to sources speaking to Nikkei Asia.

tsmc_semiconductor_chip_inspection_678x452.jpg

TSMC, Apple's main chip supplier, is in the process of increasing its prices following wider inflation in the industry caused by the global chip supply shortage. The company's planned price rises are said to be the most substantial chip price hikes in a decade.

TSMC's chips were already around 20 percent more expensive than those from its direct rivals, but smaller foundries have ramped up their own prices due to higher material and logistics costs, and TSMC has committed to $100 billion in new investment over the next three years, motivating the company to increase its prices to maintain its premium and pass these added costs on to clients.

TSMC is reportedly also keen to stop its clients from ordering more chips than needed in the hope of securing production line space and additional support from contract chipmakers, which has made it difficult for the company to understand real demand. Clients will need to negotiate specific terms for manufacturing before the price rises officially take effect from October 1.

The company is still working through existing orders, meaning that the impact of the price rises will be felt much more acutely next year when production capacity has expanded and existing orders have been completed. Sources speaking to Nikkei said that chip developers such as Qualcomm will pass TSMC's price increases onto device makers such as Apple. TSMC also supplies Apple directly with the likes of the A14 and M1 chips.

The effect on retail prices for devices such as smartphones and computers is expected to be "noticeable." It is speculated that consumer electronics brands will increase the retail prices of their high-end models next year to offset the impact on mid-range and entry-level devices.

Chip prices are expected to remain high while clients push for smaller fabrication and more advanced chip production processes. Other sources said that the market should correct once demand falls since chipmakers will need to lower prices "to lure more clients and maintain utilization rates."

Late last month, DigiTimes reported that these price rises could hit sooner than expected, with the iPhone 13 lineup being more expensive due to increased chip costs. Even so, it appears that the effect of increased chip prices will not fully impact Apple until next year.

Article Link: Apple Products Could See 'Noticeable' Price Rises Amid Increased Chip Costs
 
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Lounge vibes 05

macrumors 68000
May 30, 2016
1,991
6,373
I mean, it was DigiTimes that initially said the iPhone 13 would be more expensive, so I’m going to say that it’s probably going to be the exact same as the 12 given that… it’s DigiTimes.
Seriously, DigiTimes has an absolutely horrible track record.
It’s not that they’ve been wrong in the past, which would be one thing
It’s that they have been very, very, very wrong in the past. Like… Complete 180 from what Apple actually did.
 

justperry

macrumors G5
Aug 10, 2007
12,336
9,505
I'm a rolling stone.
Another reason to Stick with Intel on Mac

Plus you get to run the NEW and AWESOME WINDOWS 11

Only 3.8GB in size compared to 12.5GB for macOS Monterey.
1. macOS Monterey is multi arch, it will be (much) smaller later on when they drop Intel support.

2. See picture down below, enough said....

Screenshot 2021-09-06 at 18.08.46.png


3. Awesome windows 11...LOL, it still has the same (crappy) core with all those nuisances and bugs.

4. Intel, that is a dead end road.


As for the article, ha, more increases, there will be a time that (Apple) customers will say...No more...

For Instance, Intel chips have always been expensive, Apple's A (arm arch) chips are far cheaper yet the prices stayed the same or went up, m1 macs aren't any cheaper.
 
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pdmpolishing

macrumors regular
Sep 18, 2007
131
78
If prices do rise on already expensive product it starts to become out of reach for a lot of customers. You will find more and more people not upgrading on a yearly basis and keeping their existing products for much longer.

I want to upgrade my iPhone this year from an iPhone XS Max which I haven't upgraded for the last two year because of the cost of the phone and didn't really think there was much difference in the last two phones. But now being three years old it would be good to change, but if it becomes more expensive due to chip shortage I'll have to think twice, especially as production costs for the next iPhone will already be in place and the increase in chip costs is coming later in the year.
 
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