Apple’s major supplier has reportedly increased the cost of its chips

Apple is going to release the iPhone 13 series at a price that was comparable to, if not lower than, the price of the iPhone 12. Recent events, on the other hand, suggest that the business may be rethinking its position in light of the additional expenditures that may be incurred in the manufacture of the new iPhones soon.

According to a recent rumor, Apple is attempting to reduce the cost of an expense that will likely be added to the manufacturing of its iPhone 13 series soon, according to the report. The expenditure will be borne by consumers in the form of higher prices for the processors that will be utilized in these iPhones.

According to a report by DigiTimes, the development is being investigated. According to the source, Apple’s major chip supplier, Taiwan Semiconductor Manufacturing Company (TSMC), intends to raise the costs of chip manufacture to remain competitive. In January 2022, it is anticipated that the higher expenses will become effective.

According to the report, Apple and other clients of TSMC might see a cost rise of up to 20% on chips purchased from the business soon. According to the article, the firm has previously alerted its consumers about the price increase in question.

The revised pricing is expected to go into effect in January 2022, according to the TSMC. The increased pricing will be applied to purchases that are expected to be fulfilled beginning in December as well.

The iPhone 13 series, according to reports, would be launched at a greater price than previous models to mitigate the impact of the price rise on the company’s earnings. As a result, the additional expense would be passed on to purchasers of the next generation of iPhones rather than being borne by Apple.

To account for this, it is anticipated that the price of the iPhone 13 would rise by 3 to 5 percent. iPhone 12 was introduced in India last year at a starting price of Rs 79,990 and has a battery life of up to 18 hours. Using the top end of the margin as a guideline, the iPhone 13 may launch with a price tag of about Rs 85,000.

Because Apple is one of TSMC’s largest customers, the company is likely to see a significant increase in the overall cost of manufacture for its next generation of smartphones. As a result, the firm may be banking on the stronger-than-ever-before market demand projected for the new iPhones.

In light of the company’s projected sales volume, a somewhat higher price point would not be a source of worry.