Another Apple chip supplier price hike could be bad news for consumers

Another Apple chip supplier price hike could be bad news for consumers

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Source: Taiwan Semiconductor Manufacturing Co., Ltd.

Apple’s main chip supplier is planning a price hike that will take effect from 2023, less than a year after a major 2021 increase, according to reports.

From Nikkei Asia:

Taiwan Semiconductor Manufacturing Co. has warned clients for the second time in less than a year that it plans to raise prices, citing looming inflation concerns, rising costs and its own massive expansion plans to help alleviate a global supply crunch, people briefed on the matter told Nikkei Asia.

Nikkei cites six people with knowledge of the matter who say prices will rise by “single-digit percentages” of between 5%-8%, with one stating “the early notice is to give customers some buffer to prepare for the price adjustments, while TSMC’s move to raise prices is to address increasing costs and capital needs for historic expansions.”

UDN is reporting the same increase but notes the increase is “moderate” compared to some of its peers.

It comes as TSMC reported record April revenue, pulling in some $5.81 billion last month, up 55% on the same period last year.

One source told Nikkei that the price increase might be difficult to accept given the slowing demand for smartphones and PCs, especially for matured technologies.

TSMC makes the A-series chips in all of Apple’s best iPhones including the iPhone 13 and iPhone SE, as well as Apple silicon like the M1 Pro and M1 Max used in the MacBook Pro (2021) and Mac Studio. As noted, the company already increased its prices last year by 20% due to unprecedented demand and shortages.

Increasing prices for components across Apple’s lineup could be bad news for consumers, with Apple likely facing a choice to either increase prices to offset such costs or absorb the losses in an already uncertain market.

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