Apple expects strong demand for iPhone 16/Pro series – increases A18 chip orders


iPhone 16

According to Taiwan media CTEE, Apple’s supply chain reveals a huge surge in chip orders for the iPhone 16 series. Apple plans to buy between 90 million and 100 million A18 chips from TSMC. This reflects a big change relative ro previous years. This rise in orders signals Apple’s strong faith in the demand for its new iPhone models. It also means that the company looks forward to robust sales and a positive market reception.

iPhone 16 Bionic A18 chip

Comparison to Last Year

Last year, with the launch of the iPhone 15 series, Apple bought around 80 million to 90 million chips from TSMC. This volume was already impressive, indicating healthy demand for the iPhone 15 models. However, the jump in orders this year suggests that Apple expects even higher sales for the iPhone 16 in 2024. This higher order volume shows Apple’s confidence in its latest offerings and the expected market response.

New “Apple Intelligence” Feature

Boosting Initial Sales

One of the key drivers behind the expected high demand for the iPhone 16 series is the new “Apple Intelligence” feature in iOS 18. This advanced feature is likely to push early sales of the iPhone 16 models, as it requires at least an iPhone 15 Pro to function. Users with the standard iPhone 15 and iPhone 15 Plus from last year will need to upgrade to either an iPhone 15 Pro or one of the new iPhone 16 models to enjoy this new AI tool.

Compatibility

The “Apple Intelligence” feature is designed to boost the appeal of the new models, making them more attractive to users who want to stay at the forefront of technology. The requirement for a higher-end model to use this feature ensures that users will consider upgrading to the latest devices to access the full range of Apple’s innovations. This strategy not only enhances the user experience but also drives sales of the new models, contributing to the overall success of the iPhone 16 series.

Chip Evolution and Process

Last Year’s Chips

In the previous year, the iPhone 15 and iPhone 15 Plus were equipped with the same A16 Bionic chip that was used in the iPhone 14 Pro series. This chip provided solid performance and efficiency, catering to the needs of a broad user base. However, the iPhone 15 Pro and iPhone 15 Pro Max featured the more advanced A17 Pro chip, which was made using TSMC’s 3nm process, also known as “N3B.” This advanced manufacturing process allowed for improved performance and energy efficiency, setting a new benchmark for smartphone technology.

iPhone 16

A18 Series Chips

This year, all iPhone 16 models will use A18 series chips made with the N3E process. Despite the use of the N3E process, the A18 chips in the iPhone 16 and iPhone 16 Plus might stick to the A17 Pro design from the iPhone 15 Pro. This continuity ensures that users can expect reliable performance and efficiency. However, the iPhone 16 Pro and iPhone 16 Pro Max will likely get an “A18 Pro” chip with an enhanced neural network engine. This upgrade will enable better AI and machine learning tasks, providing users with more advanced capabilities and a superior overall experience.

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RAM Upgrade

More Memory

In addition to the advancements in chip technology, the base iPhone 16 model might see a significant RAM upgrade. The iPhone 15 had 6GB of RAM, but the new iPhone 16 models are expected to have 8GB of RAM. This increase will standardize all iPhone 16 models with 8GB of RAM, providing a more consistent and powerful user experience across the lineup. Apple has previously stated that 8GB is the minimum needed to run large language models (LLMs) locally on the device, which underscores the importance of this upgrade for modern applications.

AI Performance

The RAM boost will allow the iPhone 16 models to handle complex AI tasks more efficiently, making them more appealing for users who rely on high-end AI tools and apps. This enhancement will enable the iPhone 16 to run more sophisticated applications, providing a seamless and responsive user experience. The combination of advanced chip technology and increased RAM ensures that the iPhone 16 series will be at the cutting edge of smartphone performance, catering to the needs of a tech-savvy user base.

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Expected Launch

Release Timeline

Following past trends, Apple will likely unveil the new iPhone 16 series in the fall, likely around mid-September. This timing has been consistent with Apple’s previous launch schedules, allowing the company to capitalize on the holiday shopping season. The anticipation for the new models is already building, with consumers eagerly awaiting the latest innovations from Apple.

Market Impact

The higher chip orders and new features are should make a decent impact on the market. With improved AI capabilities and more RAM, the iPhone 16 series could set new standards in the smartphone industry. The introduction of the “Apple Intelligence” feature, combined with the enhanced hardware specifications, positions the iPhone 16 as a leader in mobile technology. This strategic move is likely to attract a wide range of users, from tech enthusiasts to everyday consumers, driving strong sales and reinforcing Apple’s dominant position in the market.

iPhone 16

Conclusion

Apple’s decision to increase chip orders and enhance AI features in the iPhone 16 series shows its confidence in the strong demand for its products. With the expected launch in mid-September, the iPhone 16 series promises to bring exciting advancements in technology and performance. The rise in chip orders, coupled with new features like “Apple Intelligence” and improved RAM, underscores Apple’s commitment to innovation and staying ahead in the tech world. As the market eagerly anticipates the release of the iPhone 16 series, it is clear that Apple will deliver another decent lineup of phones.

With these advancements, Apple continues to lead the way in mobile technology, pushing the boundaries of what is possible and ensuring that its devices remain at the forefront of the industry. The iPhone 16 series is not just an incremental upgrade but a significant step forward, reflecting Apple’s dedication to excellence and its ability to anticipate and meet the evolving needs of its users. As the launch date approaches, the excitement and anticipation for the iPhone 16 series continue to grow, promising another successful chapter in Apple’s storied history.

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