Apple Products Could Potentially Get Sharp Price Hike Due To Higher Costs
Image via Burin P / Shutterstock.com
A global chip supply shortage has already seen delays in devices and rising inflation. But Apple’s main chip supplier, Taiwan Semiconductor Manufacturing Co. (TSMC), is now saying that the company will need to pay even more, and these costs could be passed right on to the consumer.
TSMC is reported to already be controlling more than half of the global foundry market, according to Nikkei Asia. Its most formidable clients include Apple, Nvidia, and Qualcomm. Due to its high-profile reputation in the industry, its chips are already up to 20% pricier than rival brands, reports MacRumors.
Some of the factors that led to its existing higher prices include materials and logistics costs. Ever since the pandemic hit last year, device manufacturers have also begun to scramble for supplies, driving prices up even further.
Additionally, TSMC recently pledged around US$100 billion in spending and investments over the next three years. This price spike might be, in part, due to ensure the company can keep covering these costs despite the chip shortage.
Sources have also explained to Nikkei Asia that this comes in part to stop clients from “double-booking,” or placing orders for an excess of chips, trying to secure supply for their own devices. But, this leads to a warped picture of what demand is truly like.
It has also been said that it’s expected that chip developers, such as Qualcomm, will pass this extra cost on to the device makers, like Apple. In turn, Apple is possibly handing off the cost to its consumers, who don’t appear to have a choice in the matter.
Prices are officially expected to rise from October 1. Since TSMC is already working on existing orders, consumer wallets won’t feel the pinch until next year when the new orders begin to be fulfilled.
The devices most likely to be slapped with a heftier price tag appear to be the high-end models. There’s a high possibility that major electronics brands will attempt to lessen the “noticeable” impact on entry-level or even mid-range products, trying to keep them as affordable as they were always meant to be.
[via MacRumors, image via Burin P / Shutterstock.com]
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