Apple devices could get more expensive with chip prices set to skyrocket

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Apple chip prices to rise in 2022
TSMC is planning its biggest price hike in over a decade.
Photo: TSMC

Apple’s most popular devices could get even more expensive next year, with chip-maker TSMC said to be planning its biggest price increase in more than a decade. The move could also affect companies like Nvidia and Qualcomm.

Sources are blaming the price hike on a number of factors, including higher material costs and the ongoing chip shortage, which has encouraged some device vendors to buy up more components than they actually need.

Until recently, TSMC was one of the most expensive chip manufacturers, charging around 20% more than rival silicon firms. But with others raising their prices during the semiconductor shortage, that’s no longer the case.

An earlier report warned that the upcoming iPhone 13 lineup could be more expensive to cover new processor prices. Now, sources in Asia say that more Apple devices could be hit next year as TSMC plans a big price hike.

TSMC prices could make Apple devices more expensive

“The price of chips — and the electronic devices they power — are on track to rise into 2022 as the world’s biggest contract chipmaker joins its rivals in ramping up production fees,” reports Nikkei Asia.

TSMC is said to be preparing its biggest price increase in over a decade — not only to cover the rising costs of production, but also to stop customers from “double-booking,” or ordering more chips than they really need.

Double-booking has reportedly become a more frequent practice as some components become harder to obtain. Some device makers are thought to be placing larger orders to ensure they have ample availability in the future.

This has made it more difficult for other vendors to get hold of the chips they need — and for TSMC to get a “real picture” of chip demand.

Apple devices could get more expensive

Apple could maintain pricing and swallow the additional costs itself, of course, but that’s highly unlikely given what we know about Apple. Instead, we’re probably going to see prices rise for many of its devices.

TSMC doesn’t just make chips for iPhone and iPad, but also Apple’s newest Mac models that are powered by a custom Apple Silicon processor.