iPhone 18 Price Increase Likely Due to Advanced A20 Processor

The higher pricing is expected to stem largely from Apple’s next-generation A20 processor, which is based on a 2-nanometer manufacturing process and could cost up to US$280 per unit, about 80% more than the previous generation, Forbes reported, citing a supply-chain report from Taiwanese outlet UDN. The report said the 2-nanometer process would significantly improve energy efficiency, performance, and AI processing capabilities, while also driving up costs, adding that the industry expects 2-nanometer mobile processors to become the most expensive smartphone chips to date. Rising memory prices could further push up smartphone costs alongside the more expensive processors, it added. Tech site Phone Arena reported, citing South Korea-based tipster yeux1122, that higher memory prices are likely to affect select the 18 models as memory manufacturers increasingly shift capacity from consumer electronics to AI server demand. Based on forecasts from analysts at Citigroup, Bank of America, and JPMorgan, the tipster said the price increases would apply mainly to Pro models, with larger jumps at higher storage tiers.