Earlier this year, an intriguing report from well-known analyst Ming-Chi Kuo revealed that Apple could keep the new A16 chip exclusively for iPhone 14 Pro models, while regular iPhone 14 models will have the A15 chip from last year. In a new report, Kuo has now stated that entry-level and mid-range iPhone models will no longer have Apple’s latest chips in the future, as the company has been changing 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 regular iPhone 14 models will retain the same design as the iPhone 13 with minimal internal updates, the Pro line will draw more attention with a new screen design and significant camera updates.
This would not be the first time that Apple maintains major updates as a new design exclusive to the more expensive iPhone models. In 2017, the iPhone X was introduced with an entirely new design, Face ID and other new technologies, while the iPhone 8 and iPhone 8 Plus were just better versions of the iPhone 7.
However, both the iPhone 8 and the iPhone X were powered by the same A11 Bionic chip. Apple followed this strategy in later years with iPhone XR and iPhone XS, iPhone 11 and iPhone 11 Pro, and so on. Now it looks like things will change.
Following Kuo’s report, both 9to5Mac and Bloomberg confirmed with independent sources that only two of the four iPhone 14 models will have a new, faster chip. While some analysts believe that Apple will use a more powerful version of the A15 chip with 6GB of RAM instead of 4GB on new phones, the architecture will be the same as that found on iPhone 13 chips.
At first, we thought it might be a temporary move due to the global shortage of chips, but now Kuo seems to think otherwise.
A 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 between 40% and 50% of sales of new models by the end of 2022, the estimate has been increased to 60%.
But here’s something never said before: Kuo now claims that, from now on, Apple’s latest chips will be exclusive to high-end iPhone models. In other words, the analyst believes that Apple will no longer launch entry-level and mid-range iPhone models with its latest and greatest chips.
Keeping the new processor for the more expensive iPhone models will certainly lead more people to buy these models instead of the cheaper ones, which will cause the average price of the iPhone to go up. This means that Apple’s profits from iPhone sales will be even greater. Of course, Kuo also points out that this will also benefit camera vendors for high-end iPhones.
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, favoring suppliers of camera components. high range.
If true, it seems like the days of having an entire line of iPhones with the same new chip are gone. On the other hand, this is not a surprise, as Apple has been doing something similar with the iPad line. The more expensive models are equipped with the same chips as the Macs, while the cheaper iPad models continue with iPhone chips.
Launch and availability of the iPhone 14
If all goes according to plan, Apple will likely introduce the iPhone 14 and iPhone 14 Pro in September. It is worth noting that availability may be limited at launch due to supply issues.
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