Earlier this year, an intriguing report by well-known analyst Ming-Chi Kuo revealed that Apple may keep the new A16 chip exclusively for the iPhone 14 Pro models, while the regular iPhone 14 models will get last year’s A15 chip. In a new report, Kuo has already claimed that the base and mid-range iPhone models will no longer have Apple’s latest chips in the future as the company changes its business strategy.
iPhone 14 with A15 chip
Apple is expected to announce four new iPhone models this year: iPhone 14, iPhone 14 Max (a larger 6.7-inch version that will replace the iPhone mini), iPhone 14 Pro and iPhone 14 Pro Max. While the regular iPhone 14 models will keep the same design as the iPhone 13 with minimal internal upgrades, the Pro range will attract more attention with a new screen design and significant camera improvements.
This wouldn’t be the first time Apple kept major upgrades as a new design exclusive to more expensive iPhone models. In 2017, the iPhone X was introduced with a brand new design, Face ID and other new technologies, while the iPhone 8 and iPhone 8 Plus were simply better versions of the iPhone 7.
However, both iPhone 8 and iPhone X are powered by the same A11 Bionic chip. Apple follows this strategy in the following years with iPhone XR and iPhone XS, iPhone 11 and iPhone 11 Pro, etc. Now it looks like things are about to change.
Following Kuo’s report, both 9to5Mac and Bloomberg confirmed with independent sources that only two of the four iPhone 14 models will get a new, faster chip. Although some analysts believe that Apple will use a more powerful version of the A15 chip with 6GB of RAM instead of 4GB in the new phones, the architecture will be the same as the iPhone 13 chips.
We initially believed that this might be a temporary move due to the global chip shortage, but Kuo now seems to think otherwise.
New business strategy
In a report on his personal blog, Kuo noted that the huge differences between the mid-range iPhone 14 and the high-end iPhone 14 Pro should make the more expensive models even more popular with consumers. While the iPhone 14 Pro was previously expected to account for 40% to 50% of sales of the new models by the end of 2022, the estimate has now been raised to as much as 60%.
But here’s something that’s never been said before: Kuo now claims that Apple’s latest chips will be exclusive to high-end iPhone models from now on. In other words, the analyst believes that Apple will no longer release entry-level and mid-range iPhone models with its latest and greatest chips.
Reserving the new processor for the more expensive iPhone models will certainly lead to more people buying those models instead of the cheaper ones, driving up the average iPhone price. This means that Apple’s profit from iPhone sales will be even higher. Of course, Kuo also notes that this will benefit high-end iPhone camera vendors as well.
The latest processor chip will be exclusive to high-end iPhone models in the future, so a high proportion of shipments of high-end iPhone models will be the norm, giving an advantage to high-end camera component suppliers.
If true, it looks like the days of an entire iPhone lineup with the same new chip are over. Then again, it’s no surprise since Apple does something similar with the iPad lineup. The more expensive models are equipped with the same chips as the Macs, while the cheaper iPad models stick with iPhone chips.
iPhone 14 release and availability
If all goes according to plan, Apple is likely to unveil the iPhone 14 and iPhone 14 Pro in September. It’s worth noting that availability may be limited at launch due to supply issues.
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