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The estimated 10%-20 percent price increase for Apple’s iPhone 15 is expected to boost profits for the tech company’s Taiwanese suppliers.
The price of the new iPhone 15 series that Apple could release as soon as this fall may see a price increase of $100 (NT$3,071) to $200, representing a hike of 10 percent to 20%, reported UDN. The iPhone 15 Pro Max 1TB may cost as much as $1,800, making it the most expensive iPhone in history.
The market expectation is that the new iPhone 15 series will usher in a wave of phone replacements due to the major upgrades in specifications, which will increase the price by at least 10%, boosting profits for Apple’s suppliers. Foxconn, Pegatron Corporation, Taiwan Semiconductor Manufacturing Company (TSMC), and Largan Co. are all expected to see a surge in orders in the second half of the year.
Wedbush Securities analyst Dan Ives explained the reasons for the possible price increase of the iPhone 15 to Barron’s. He said, first of all, Apple will change the Lightning port to a USB-C port on the iPhone 15 to meet the requirements of EU regulations that all portable devices contain this port by 2026.
Other factors include a new chipset new models are anticipated to include the Dynamic Island and the fact prices have not been raised on iPhones in the US market since 2017.
Ives said that since an estimated 250 million iPhone users have not changed their phones in the past four years, so it is expected that iPhone 15 sales will reach 235-240 million units. One of the reasons consumers may want to upgrade their phones is to have access to the USB-C charging port, said Ives.
In addition, the cost of key components continues to rise, which is also one of the main reasons for the price increase of the iPhone 15. According to previous reports on the iPhone 14, among the key components of the device, the OLED panel has the highest cost, followed by the camera module and the A16 Bionic processor.
The iPhone 15 series models will be powered by the A17 Bionic processor, manufactured by TSMC. Largan will supply the lenses, and Foxconn and Pegatron with assemble the phones. Foxconn’s production base in China has reportedly started to mobilise for the mass production of the new phones.
https://www.taiwannews.com.tw/en/news/4918364
Category: Taiwan
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