IPhone 13 Likely To Cost Higher Than Expected Due To Increase In Chip-Making Costs: Reports

New Delhi: According to recent media reports, the iPhone 13 series prices can cost even higher than expected. Apple is reportedly mulling over increasing the price for iPhone 13 series to mitigate the profitability concern raised by a rise in chip-making costs.Apple’s leading chip supplier Taiwan Semiconductor Manufacturing Company (TSMC) plans to increase the costs of its chip production by up to 20 per cent, DigiTimes reported its sources as informing. The company has notified its customers about this price hike which is slated to be enforced from January 2022, it added. ALSO READ | Yahoo News, Yahoo Cricket, Finance, Entertainment Shut India Operations From Today Over New FDI RulesApple, being one of TSMC’s biggest clients, will reportedly sell its iPhone 13 series at a higher price tag to prevent seeing an adverse impact on the company’s profits.According to the DigiTimes report citing sources, the new prices will be applicable to the orders scheduled to be fulfilled starting December.Apple’s orders reportedly account for over 20 per cent of TMC’s total revenue from its chips. As TSMC’s quotes for advanced sub-7nm process technologies may rise by 3-10 percent, Apple can bring a 3-5 percent hike in iPhone 13 prices, the report states.So with this move, Apple will pass the burden of increasing production costs to customers and other smartphone brands may follow suit.The iPhone 13 range is expected to bring further improvements in cameras and OS among other departments. Additionally, the India pricing of the iPhone 13 series and its subsequent impact on the demand and sales here will be interesting to see after the 12 series was already priced the highest for the Indian market.

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