It has been widely reported that all five iPhones set to be released next year, including the first to arrive, the iPhone SE 4, will continue to utilize chips manufactured using the 3nm process by TSMC. However, many analysts predict a significant shift in 2026, with some iPhone 18 models adopting 2nm chips. This transition comes with a notable cost increase, as a new report from Taiwanese news site Ctee indicates that Apple will pay TSMC an additional $35 per unit, bringing the total cost to $85 per iPhone.

Cost Implications and Considerations

Although $35 may not seem like a substantial amount initially, it is important to consider two key factors. Firstly, this represents a 70% increase from the current cost of $50. Secondly, and more importantly, this increase is just what Apple will pay. For consumers, it is highly likely that the price will rise by a much larger margin. This can be inferred from past data, as shown by the profit margins on previous iPhone models. For example, on the iPhone 15 family, the profit ranges from 47% on the iPhone 15 to 53% on the iPhone 15 Pro Max. Therefore, a $35 increase for Apple is likely to translate to at least a $50 increase for consumers, and potentially even more.

Despite the added cost, the shift to 2nm chips is expected to bring significant benefits. Smaller transistors allow for more to be packed onto a chip, enhancing both speed and efficiency. This could lead to a more seamless user experience and improved performance across various applications.

However, it remains uncertain whether all iPhone 18 models will benefit from the 2nm chipset. In the past, Apple typically used the same chips in all its phones until the iPhone 14. After that, it started offering faster chips to the Pro models while providing older silicone to the regular models. It is possible that similar strategies will be employed with the iPhone 18, with the cheaper models continuing to use 3nm chips to keep costs down. This is in line with the expectations of analyst Ming-Chi Kuo.

Rumors and Speculations for the iPhone 18

Beyond the discussion of 2nm chipsets, there are very few rumors available about the iPhone 18 at this early stage. There is talk of under-screen Face ID, which could potentially lead to the end of the Dynamic Island feature. However, it is also possible that such features may be delayed or even abandoned.

The iPhone 17 lineup, on the other hand, is starting to take shape nicely. One of the most exciting developments is the potential introduction of a new thinner model, either the iPhone 17 Slim or iPhone 17 Air. This will join the existing roster and may come at the expense of the struggling iPhone 16 Plus. However, it is likely to come with a higher price tag that may not be affordable for all buyers.

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