Tech enthusiasts and Apple loyalists are anticipating the arrival of the iPhone 14 lineup this year, but rumors have circulated that the phones’ prices will increase. Although nothing is set in stone, people will have to wait until mid-September to learn if the rumors are accurate.
Many speculate that drastic cost increases stem from Apple’s parts suppliers, and the sentiments of the increase only grew when companies in the iPhone supply chain indirectly confirmed the company would pass some of the rising costs of manufacturing iPhones this year.
Japanese company Showa Denko K.K. is known for supplying the chip fabrications to chipmaker TSMC, which manufactures the A-series and M-series custom chips in Apple devices.
The company is responsible for the A15 chips in the iPhone 13 models and will manufacture the A16 chips in the upcoming lineup.
However, reports say that Showa Denko was forced to raise costs several times due to COVID-19 lockdowns, wars, and the declining value of the yen.
Chief Financial Officer Hideki Somemiya told Bloomberg that the company had no choice but to increase the cost it passes on to customers.
“A big theme this year common to all the players in the materials industry is how much cost burden we’d be able to convince customers to share with us,” he explained.
“The current market moves require us to ask twice the amount we had previously calculated.”
With TSMC passing the cost increases to Apple, the iPhone 14 prices could be raised.
iPhone 14 prices
Reports say that Apple will make two different moves to raise the cost of the iPhone 14 series.
Since last year, rumors have circulated that the iPhone mini lineup will be discontinued after the 13, replacing it with the 6.7-inch iPhone 14 Plus/Max – the device is rumored to be priced around $899.
The regular iPhone 14 will likely retain its $799 price.
Meanwhile, the Pro models will see an increase with a starting price of $1,099. The cheapest iPhone 14 Pro Max is also rumored to be $1,199.
Years earlier, Apple and wireless carrier partners used a pricing strategy for the base models wherein buyers could get a $30 discount at checkout by taking carrier deals. However, the actual sticker prices of the iPhone 13 and 13 mini are $729 and $829, respectively.
Provided the company still uses the cost-saving strategy for the upcoming iPhone 14, the cheapest models could start at $829 and $929.