Apple is expecting big iPhone 16 sales, based on chip orders

AppleInsiderAppleInsider
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in iPhone

Apple has reportedly increased its chip order with TSMC, one that apparently puts both the iPhone 16 and iPhone 16 Pro models on the A18 chip.

Two smartphones in black and gold colors, displaying their triple rear cameras and side buttons, on a gradient background.
Renders of what could be the iPhone 16 Pro



The introduction of Apple Intelligence at WWDC may have helped increase the demand for the iPhone 16. However, it seems that Apple may also be changing its chip strategy to match.

According to sources of CTEE, Apple has upped its chip order from partner TSMC. With the increased order in place, Apple is supposedly preparing to sell between 90 million and 100 million units of the iPhone 16.

This is in contrast to what was believed to be an 80 million to 90 million iPhone 15 and iPhone 15 Pro order volume from September 2023.

At the same time, TSMC has chips in Apple's M4 series ready to be produced and shipped in the second half of 2024.

A change in chip strategy



The report claims that both the Pro models and the non-Pro will be using the A18 processor family. However, while that sounds like the A18 will be used on both tiers of device, it's not necessarily going to mean all-new chips all round.

For the last few iPhone generations, Apple incorporated new chip features into its Pro product line. The standard iPhone tier instead had the same chips one year later.

This is demonstrated in the iPhone 15 family of devices. While the iPhone 15 Pro and Pro Max used the A17 Pro, the iPhone 15 and Plus used the A16.

While it sounds different in the iPhone 16 collection, it's actually fairly similar to the current chip strategy, if not by name.

The reports says the iPhone 16 and iPhone 16 Plus will use the A18 processor. This chip is described as using the A17 Pro design, but using a new N3E process at TSMC.

The iPhone 16 Pro range will use a new A18 Pro chip design. This will include a processor that's 15% to 20% to accommodate more graphics and AI computing elements.

If true, this is effectively Apple sticking to the same hand-me-down chip strategy as before, but tweaked with the new process and changing the name.

The rumor mill has also previously mentioned the use of the A17 in the iPhone 16. Whether it adapts based on this report, it remains to be seen.

The Apple Intelligence boost



The increase in orders for the chip should be beneficial to both Apple and TSMC, especially considering the minimum requirements for Apple Intelligence.

So far, the only models of iPhone that could run Apple Intelligence are the iPhone 16 Pro and Pro Max, due to the increased Neural Engine performance and onboard memory compared to previous generations. The A18 chips will bring all of the A16 iPhone models into being capable of using Apple Intelligence, so long as they have better specifications than the A17 Pro.

This should also be a boost to the memory of non-Pro iPhone models as well. The iPhone 15 has 6GB of memory, while the iPhone 15 Pro has 8GB.

Since Apple Intelligence requires 8GB at a minimum, this should translate to memory increases for the non-Pro models this fall.

Rumor Score: Possible

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Comments

  • Reply 1 of 7
    mike1mike1 Posts: 3,326member
    AppleInsider said:
    For the last few iPhone generations, Apple incorporated new chip features into its Pro product line. The standard iPhone tier instead had the same chips one year later.

    This is demonstrated in the iPhone 15 family of devices. While the iPhone 15 Pro and Pro Max used the A17 Pro, the iPhone 15 and Plus used the A16.

    If I'm not mistaken, the 15 models were the only series that followed this path. Don't think it was the case with the 14 series. That would make last year the outlier.
    Alex1N
  • Reply 2 of 7
    chasmchasm Posts: 3,404member
    I think Apple Intelligence will move a LOT of potential upgraders who were planning on hanging on to their 11, 12, even 13 iPhones for another year or two.

    Once it gets out in the "real world" and Apple starts promoting it, I think both the Intelligence feature and the hardware redesign will justify Apple's faith in betting big on it.

    I am, of course, assuming that all models of the iPhone 16 will have the RAM and Neural Engine needed for Apple Intelligence. If Apple keeps that as a "Pro or Pro Max only" feature, I would see that as a big mistake.
    ssfe11
  • Reply 3 of 7
    humbug1873humbug1873 Posts: 144member
    Right ... it's July so we get 'Apple is ordering sooo much stuff' ... comes January 'Apple cut it's orders'

    You can probably cut-n-paste these articles annually.
    blastdoor
  • Reply 4 of 7
    tenthousandthingstenthousandthings Posts: 1,053member
    mike1 said:
    For the last few iPhone generations, Apple incorporated new chip features into its Pro product line. The standard iPhone tier instead had the same chips one year later.

    This is demonstrated in the iPhone 15 family of devices. While the iPhone 15 Pro and Pro Max used the A17 Pro, the iPhone 15 and Plus used the A16.

    If I'm not mistaken, the 15 models were the only series that followed this path. Don't think it was the case with the 14 series. That would make last year the outlier.
    It started when the A15 Bionic was used in the iPhone 13, then reused for the iPhone 14, while the iPhone 14 Pro got the A16 Bionic.

    But yes, it’s just these last two generations.

    It’s interesting (if accurate) that the A17 Pro architecture will be reused on N3E for A18. I think we might be able to draw some conclusions from that. It could mean that the A17 Pro was rearchitected (in preparation for the transition to N3E) at a late stage, while the M3 family was not changed. That would explain the INT8 support in the A17 Pro’s Neural Engine, while M3 (apparently) doesn’t have it.
    edited July 2
  • Reply 5 of 7
    danoxdanox Posts: 3,081member
    Apple Intelligence, insiders at Apple know what they have coming and are executing the plan...... If you have been investing in Apple invest more or just stay long.
    edited July 2
  • Reply 6 of 7
    blastdoorblastdoor Posts: 3,409member
    I have a 13 pro that still works great. I’m interested in Apple intelligence and expect it will eventually be pretty compelling. But until I see that the potential has been truly realized, I won’t upgrade my phone. 
  • Reply 7 of 7
    mattinozmattinoz Posts: 2,379member
    mike1 said:
    For the last few iPhone generations, Apple incorporated new chip features into its Pro product line. The standard iPhone tier instead had the same chips one year later.

    This is demonstrated in the iPhone 15 family of devices. While the iPhone 15 Pro and Pro Max used the A17 Pro, the iPhone 15 and Plus used the A16.

    If I'm not mistaken, the 15 models were the only series that followed this path. Don't think it was the case with the 14 series. That would make last year the outlier.
    It started when the A15 Bionic was used in the iPhone 13, then reused for the iPhone 14, while the iPhone 14 Pro got the A16 Bionic.

    But yes, it’s just these last two generations.

    It’s interesting (if accurate) that the A17 Pro architecture will be reused on N3E for A18. I think we might be able to draw some conclusions from that. It could mean that the A17 Pro was rearchitected (in preparation for the transition to N3E) at a late stage, while the M3 family was not changed. That would explain the INT8 support in the A17 Pro’s Neural Engine, while M3 (apparently) doesn’t have it.
    If yields on the new process are in the improving stage then are they really 2designs or is A18 the binned A18pro. 

    If Apple want to make a splash then ordering more and bringing the A18 and A18pro to more devices would also be a solid plan. Like AppleTv and iPad mini would seem to be good targets even do a base and pro versions of each. 
    edited July 2
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