The production cost of the iPhone 15 series has risen

The forthcoming generation of the iPhone 15 series, expected to arrive this autumn, has piqued the anticipation of numerous consumers, as it may not only introduce novel features and prescient modifications but also replace the decade-old Lightning port with a USB-C port. Apple is poised to incorporate increasingly distinctive designs into flagship models such as the iPhone 15 Pro Max, thereby widening the gap between it and other models and justifying heightened pricing.

According to Wccftech, the iPhone 15 Pro Max and iPhone 15 Pro will be equipped with the new A17 Bionic chip, manufactured using TSMC’s 3nm process. Production costs are estimated to rise by 20%, while the iPhone 15 Plus and iPhone 15, both featuring the existing A16 Bionic chip, will see a 12% increase in production costs. Given the current circumstances, Apple may be compelled to raise prices across the iPhone 15 lineup to maintain profitability if it cannot reduce mass production costs.

The escalating production costs for the iPhone 15 series are partially attributable to TSMC, due to the company’s increased wafer foundry pricing, its persistent utilization of restrictive tools in manufacturing, and the rising costs of materials and labor. Additionally, there are issues associated with production. Particularly for the iPhone 15 Pro Max and iPhone 15 Pro models, which employ the TSMC-manufactured 3nm A17 Bionic chip, rumors suggest that Apple has lowered the chip’s performance benchmarks in order to minimize costs, as a result of yield rates and production capacity concerns.

Apple may seek alternative measures to curtail costs, striving to minimize expenses as much as possible to avoid passing them onto consumers. In light of the ongoing global economic downturn, price hikes are far from an ideal solution, and greater emphasis should be placed on implementing cost-cutting strategies.