Top-of-the-line iPhone 16 may break the 20,000 yuan mark! Chip price hikes are the main reason

According to the report released by Tianfeng International Securities analyst Guo Mingchi, the flagship processor SM8750 (Snapdragon 8 Gen4), which is set to be mass-produced in the second half of this year, is expected to see a significant price increase compared to the current flagship chip SM8650, with an increase range of up to 25% to 30%, jumping to a unit price between $190 and $200. Behind this change is a profound adjustment in the cost structure of the chip manufacturing industry, especially the price hikes by major chip manufacturers such as TSMC, undoubtedly adding to the cost burden of the industry chain upstream. Not only chip manufacturers themselves are affected, but also global tech giants including Qualcomm (QCOM.US), Apple (AAPL.US), and NVIDIA (NVDA.US) will face higher production costs. As core suppliers of consumer electronics products, the rising costs will undoubtedly trigger a series of chain reactions. On the one hand, they will have to reevaluate product pricing to ensure that profit margins are not eroded; on the other hand, there is a general market concern that these additional costs may ultimately be passed on to end consumers, leading to an increase in retail prices of products. Taking the iPhone 16 Pro and the upcoming RTX 5090 series graphics cards as examples, these products are planned to adopt the most advanced 3-nanometer process technology, which in itself implies higher R&D and production costs. Combining Guo Mingchi's report, the cost for consumers to purchase these cutting-edge tech products will inevitably rise. Against the backdrop of global inflation where prices are generally rising and consumer purchasing power is affected, even if the new product pricing reaches 20,000 RMB, it seems to be within market expectations and no longer appears so abrupt. It is reported that the iPhone 16 series will integrate the latest Apple A17 Pro/A18 or higher-level processors, providing unprecedented performance. In terms of design, the iPhone 16 Pro series is a bold breakthrough, with its rear camera module adopting a unique "fingertip gyroscope" design, not only powerful in function but also showcasing Apple's ultimate pursuit in industrial design. The application of ultra-narrow bezel technology will further enhance the phone's aesthetics and visual experience. In addition, Apple will also launch a brand new iOS operating system, paired with a high refresh rate screen, to bring users a smoother operating experience. At the same time, the update of the Apple Watch series of smart wearable devices will also debut alongside the iPhone 16 series, demonstrating Apple's strong integration capabilities within its ecosystem