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Apple Reportedly Agrees to TSMC Chip Price Hike After Refusing Last Week
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Good on TSMC for standing up to Apple. We obviously don't have inside information for stories such as this, but there's the possibility that TSMC were required to up their pricing given the rate of development recently. Apple is no different to any other customer, they have to pay their way.
I mean they could use a competitor for their budget or mid-range products to put a bit of pressure on TSMC..but in doing so they could make more advanced processes more accessible to their competitors?
A 6% price hike for Apple probably translates into a 10-15% price hike for us. If I have to open my wallet any wider it will probably tear at the seams.
Guess who is going to be paying the extra? Us, the customers. So really nothing to celebrate if you’re an Apple customer which is assumed if you frequent a website designed for Apple customers.
So did they give in because that Procurement executive at Apple was fired last week? The one that made a joke on TikTok?
The electronics business is heading for (is already in) a downward slope - ironically just as a number of initiatives to increase production capacity have been made. At this point in time, while there have been a number of companies producing designs for TSMC 3, the actual volumes they will produce remain unclear.
Apple has been a driving force for pushing the manufacturing capabilities for advanced nodes. If Apple were to say ”screw this, the cost vs. benefit just isn’t there”, it would have far reaching repercussions. This news simply says that this is not going to happen. Yet.
I also took a high school economics class.
Fire head of procurement ✅
Bend over to your suppliers one week after that ✅
Tim Apple is onto something bigger here…must be a hoot working for him
Bend over to your suppliers one week after that ✅
Tim Apple is onto something bigger here…must be a hoot working for him
And we will feel more of it from next year 😂 as they will continue to blame othersNow you feel what we feel Apple
Maybe if you wouldn’t have fired your big-breast-fondling negotiator
Oh Apple will pass it on to us, have no doubt.Now you feel what we feel Apple
Apple says no problem we will just increase the cost of our phones
They are not paying for it, we are.Now you feel what we feel Apple
I am really wondering if you understand that Timmy isnt going to suck up anything at all... you are.
And Timmy next year will yell: "LMAO suck it up SmugMaverick"... He will be crying his heart out watching you vent endlessly on Macrumors about the price hike and then fork down your cash anyway to get the next shiny new iPhone.
Facts.
Ecomonics 101. Oil prices rise again at the pump due to 3 grasshoppers in Coachella Valley California leaping to their death off the back of a 2001 PT cruiser into the grill of a tractor trailer fully loaded with garlic West bound on I-10!
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Can't help but wonder whether Blevins leaving Apple was at all a factor in the workings here
price hike cause by trouble-maker US govt sanctioning & stirring the market.
A 3 to 6% increase for them means a 20-30% increase for consumers.
The consequences of putting all your eggs in one basket, TSMC have a waiting que of potential customers, Apple have no alternative suppliers at the moment. There can only be 1 outcome
After refusing a price hike last week from its primary chip supplier, TSMC, Apple has apparently reversed course and accepted the increase in prices set to be applied next year, according to the latest report from Economic Daily News.
From January 1, 2023, TSMC plans to raise the price of 8-inch chip wafers by 6 percent, while 12-inch wafers are set to increase by 3 to 5 percent. Economic Daily News previously reported that Apple wouldn't accept the price increase, but it is now saying the company has agreed to bear the cost.
TSMC's fabrication materials suppliers have been forced to drastically increase prices on the back of the global chip shortage. Other component makers and material suppliers are making similar moves in the semiconductor industry amid a wider price squeeze.
In May, Bloomberg reported that TSMC was in the process of warning its customers of a considerable price increase. This came after a hefty 20 percent price hike in 2021, which was said to be the most substantial chip price rise in a decade. Last year, it was speculated that Apple may have to raise device prices to account for substantial chip price rises.
TSMC produces A-series chips for the iPhone, iPad, and Apple silicon chips for the Mac. The foundry is expected to begin production of 3nm chips for Apple by the end of 2022. Apple's first 3nm chip may be the M2 Pro chip for Macs, while the A17 Bionic chip in next year's iPhone 15 Pro models is also expected to be a 3nm chip.
Apple's transition to 3nm chips will result in further improved performance and power efficiency in upcoming Macs and iPhones, as Apple seeks to preserve its performance-per-watt lead over competitors like Intel, even if that means paying higher prices and potentially passing on the cost to consumers.
Article Link: Apple Reportedly Agrees to TSMC Chip Price Hike After Refusing Last Week
Apple accepts the price hike? No, it's the customer who will bear the burden. Prepare for another price increase folks!