Apple products could be more expensive next year as chip prices rise

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According to sources from Nikkei Asia, Apple may increase the selling price of its products launched next year when chip prices rise.

TSMC, Apple’s main chip supplier, is in the midst of a price hike following broader inflation in the industry due to a global chip supply shortage. The company’s planned price increase is believed to be its biggest in a decade.

Currently, TSMC’s chips are already about 20% more expensive than direct competitors. TSMC has also committed to new investment of $100 billion over the next three years, setting the stage for the company to increase its price.

TSMC is also said to want to prevent its customers from ordering more chips than they need in the hopes of securing production line space and extra support from contract chipmakers, but this makes the company have difficulty understanding actual needs. Customers will need to negotiate specific terms of production before the price increase officially takes effect from October 1.

Taiwan Semiconductor Company is currently still working through existing orders, meaning the impact of the price increase will be more apparent next year as production capacity has been expanded and Existing orders have been completed.

This will likely cause “Apples defect” to increase the price of its products launched next year. Wait and watch it!