Apple is preparing to take a critical step in smartphone processors, but this technology upgrade may be accompanied by a significant cost increase, making the 2026 iPhone 18 series the most expensive generation in history.
The next-generation A20 chip is expected to be the world's first mass-produced 2-nanometer chip, produced by TSMC. Due to significant advancements in process technology, the price of a single chip is likely to be at least 50% higher than the existing A19. The main reason for the cost increase is TSMC's huge investment in next-generation semiconductor manufacturing processes and yield constraints in the early production stages.
The A18 chip currently used in the iPhone costs about US$45, accounting for about one-tenth of the cost of mobile phone parts. However, the manufacturing cost of the A20 chip is expected to soar to about $280, almost six times that of the previous generation. This will force Apple to choose between two paths, either absorbing the costs itself and compressing profits, or passing on some of the costs to the retail price.
This change also means that the performance of the 3nm process has reached its limit, and Apple must move to more advanced nodes in order to continue to improve performance and energy efficiency.
For consumers, if you are still using iPhone 14 or earlier models and plan to upgrade to iPhone 18 Pro in 2026, you may need to prepare for a higher budget. There are rumors in the market that Apple will skip the successor models of the standard iPhone 18 and iPhone Air in September 2026, and only launch Pro series models. This means that consumers who want to upgrade may need to choose a more expensive high-end version, or switch to a lower-priced iPhone 17 series.
In addition, not only Apple, but the overall price of the high-end flagship mobile phone market in 2026 may also rise. Whether in the iOS or Android camp, Pro or Ultra models using 2nm processors are expected to be more expensive than current models.
At present, it seems that Apple will be the first to introduce the 2nm process in high-end iPhones. Initially, it may be limited to the Pro series. The standard model will still use 3nm chips. It will be fully introduced after the production capacity is stable. The A20 chip may also become the design basis of Apple's M6 chip in the future.
It is worth mentioning that Apple also reported plans to skip the iPhone 19 and launch the iPhone 20 series in 2027, thereby starting a new product generation on the occasion of the 20th anniversary of the iPhone.
Apple’s next-gen iPhone chip could make upgrading in 2026 more expensive for you Further reading: Recreating an iPhone X moment? Apple will usher in a new generation of design language with iPhone 20 in 2027