Apple Expects Big iPhone 16 Sales Based on Increased Chip Orders

Increased Chip Orders

1. Sources and Numbers:

   • Apple has increased its chip orders from TSMC, anticipating sales between 90 million and 100 million units of the iPhone 16.
   • This is a significant increase compared to the 80 million to 90 million units expected for the iPhone 15 series.

2. Apple Intelligence Influence:

   • The introduction of Apple Intelligence at WWDC has likely boosted demand for the iPhone 16, influencing the increase in chip orders.

Change in Chip Strategy

1. A18 Chip for All Models:

   • Both iPhone 16 and iPhone 16 Pro models will feature the A18 chip.
   • This contrasts with previous strategies where only the Pro models received the latest chips.

2. Processor Details:

   • The standard iPhone 16 and iPhone 16 Plus will use the A18 processor, based on the A17 Pro design but utilizing TSMC's new N3E process.
   • The iPhone 16 Pro range will feature a new A18 Pro chip, expected to be 15% to 20% more powerful, with enhanced graphics and AI computing capabilities.

Hand-Me-Down Strategy

1. Past Practices:

   • In previous generations, Apple incorporated new chip features into its Pro models first, with standard models receiving the previous year’s Pro chips.
   • For example, the iPhone 15 Pro used the A17 Pro, while the iPhone 15 and Plus used the A16.

2. Tweaked Approach:

   • While the iPhone 16 series appears to follow a similar strategy, the new naming convention and process improvements mark a slight tweak.

Apple Intelligence Compatibility

1. Minimum Requirements:

   • The current Apple Intelligence features require enhanced Neural Engine performance and at least 8GB of memory.
   • Only the iPhone 16 Pro and Pro Max can run Apple Intelligence with the A17 Pro, but the A18 chips will extend this capability to all iPhone 16 models.

2. Memory Boost:

   • The iPhone 15 has 6GB of memory, while the iPhone 15 Pro has 8GB.
   • The iPhone 16 non-Pro models are expected to see a memory increase to meet the 8GB minimum required for Apple Intelligence.

Future Projections

• TSMC's Role:
  • TSMC is preparing to produce and ship chips in Apple’s M4 series in the second half of 2024.
• Other Collaborations:
  • Apple plans to support Google Gemini and is in ongoing discussions with AI startup Anthropic.

The increased chip order from TSMC highlights Apple’s confidence in the iPhone 16’s potential market success and underscores the company’s commitment to integrating advanced AI capabilities across its device lineup.