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News In Brief Technology and Gadgets

iPhone 18 Pro Could Get Expensive: New Chip Technology Behind Cost Hike

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iPhone 18 Pro Could Get Expensive: New Chip Technology Behind Cost Hike
05 Jan 2026
5 min read

News Synopsis

Apple is gearing up for the launch of the iPhone 18 Pro lineup, and early reports suggest this next-generation flagship may come with major upgrades — along with a possible price hike. Powered by the powerful new A20 Pro chipset built on TSMC’s advanced 2nm process, the iPhone 18 Pro could deliver big gains in performance and efficiency, but rising production costs may push its price higher than previous models.

Apple to Launch iPhone 18 Pro Soon — Expected Price and Key Upgrades Explained

Apple Prepares Next-Gen iPhone 18 Pro Series

Apple is gearing up to introduce the iPhone 18 Pro lineup later this year, and speculation around the upcoming flagship phones is gaining momentum. Early reports suggest that the iPhone 18 Pro and iPhone 18 Pro Max may see a price increase compared to earlier Pro models — largely due to rising chipset production costs.

Why the iPhone 18 Pro Could Become More Expensive

TSMC’s Next-Gen 2nm Technology Drives Costs Up

According to reports from Taiwanese publication Money.udn, Apple could experience higher manufacturing expenses because the company plans to use TSMC’s new 2nm process node for the next-generation A20 Pro chipset.

TSMC — the world’s biggest semiconductor manufacturer — produces Apple’s premium chipsets, and the upgrade to 2nm promises better performance and improved battery efficiency across high-end devices.

Which Devices Will Use the New A20 Pro Chip?

Expected A20 Pro-Powered Devices

  • iPhone 18 Pro

  • iPhone 18 Pro Max

  • Rumoured foldable iPhone

All three are expected to debut in September this year.

The next-generation iPhone Air is also expected to feature the same processor, but will likely arrive in early 2027. Meanwhile, the base iPhone 18 and iPhone 18e are expected to run the standard A20 chipset.

Huge Cost Surge for Apple’s A20 Chipset

Manufacturing Becomes Significantly More Expensive

The report claims that the A20 and A20 Pro processors will be produced using TSMC’s advanced 2nm technology, replacing the 3nm-based A19 series.

However, this improvement comes at a steep cost.

The price of a 12-inch silicon wafer used in 2nm production has reportedly risen to nearly $30,000 (roughly ₹27 lakh) — a jump from $20,000 (roughly ₹18 lakh) for 3nm wafers.

Chip Cost Per Unit Skyrockets

As a result:

  • Estimated cost per A20/A20 Pro chip: around $280 (approx. ₹25,200)

  • Previous A19 Pro cost: $150 (approx. ₹13,500)

  • A18 Pro chipset cost: $50 (approx. ₹4,500)

This represents an 87% increase over the A19 Pro and nearly six times higher than the A18 Pro — putting pressure on Apple’s pricing strategy.

Apple now faces a key decision:
Either absorb the increased cost or raise retail prices — especially with memory component constraints also driving production costs higher.

iPhone 18 Pro: Expected Design and Feature Upgrades

Major Front-Design Overhaul

Rumours suggest Apple may remove the Dynamic Island on the iPhone 18 Pro models, replacing it with:

  • A punch-hole selfie camera

  • Under-display Face ID technology

New Unified Color Finish

Apple is reportedly exploring a single-tone colour design, moving away from the dual-tone finish planned for the iPhone 17 Pro lineup.

Camera Enhancements

The iPhone 18 Pro is also expected to feature a variable-aperture main lens, giving users:

  • More creative depth-of-field control

  • Improved low-light photography

iPhone 18 Pro Launch Timeline and Expected Pricing

Launch Schedule

The iPhone 18 Pro series is expected to debut in September 2026, alongside the rumoured foldable iPhone.

Apple has not finalized the pricing yet, due to ongoing production-cost challenges.

For comparison:

  • iPhone 17 Pro starts at ₹1,34,900

  • iPhone 17 Pro Max starts at ₹1,49,900

If rising chipset costs continue, the iPhone 18 Pro lineup could see a noticeable price increase over these figures.