All five iPhone models coming next year, including the first iPhone SE 4, will reportedly continue to use chips manufactured by TSMC on the 3nm process.

However, many analysts predict that TSMC will move to 2nm chips in some iPhone 18 models in 2026. And now, for the first time, the cost of this change has been estimated in dollars.

According to a new report from Taiwanese news site Ctee, Apple will pay TSMC $35 more per unit for the associated costs of leaning toward 2nm chips, bringing the total cost per iPhone to $85.

While this does not sound like a large sum, two things are worth considering. First, this represents a 70% increase over the current cost of $50. Second, and more importantly, the $35 increase is what Apple will pay, and for consumers, it will almost certainly be more.

This is because while Apple does not break down the component costs of its devices, many third parties attempt to do so with each release. For example, here is exactly how much profit the company makes on the iPhone 15 series smartphones, ranging from 47% on the iPhone 15 to 53% on the iPhone 15 Pro Max. In other words, a $35 price increase for Apple is likely to be at least $50 for consumers, perhaps more.

Still, the additional cost is likely to be worth it: scaling down from 3nm to 2nm means smaller transistors, which in turn means that more transistors can be packed onto the chip, increasing both speed and efficiency.

It is unclear whether all iPhone 18 models will benefit from the 2nm chipset; up until the iPhone 14, Apple used the same chip in all phones, but then gave the regular models a year-old silicon while giving the Pro models a faster It chose to offer it.

This year, Apple backtracked a bit, minimizing the speed difference between the A18 in the iPhone 16 and the A18 Pro in the iPhone 16 Pro. However, given the additional cost of the 2nm process, it is not surprising that Apple decided to stick with 3nm chips in the less expensive models. In fact, analyst Ming-Chi Kuo predicts as much.

In addition to talk of a 2nm chipset, the iPhone 18 is also thinly rumored because it is premature. While there is talk of under-screen Face ID (which will likely see the demise of Dynamic Island) and a variable aperture wide-angle lens, such features could be delayed or abandoned.

However, the iPhone 17 lineup is taking shape nicely. Most exciting is the addition of a new thinner model, the iPhone 17 Slim or iPhone 17 Air, at the expense of the struggling iPhone 16 Plus. But it may cost considerably more than most buyers will be willing to put up with.