AI

Apple Projects AI Features to Drive iPhone 16 Sales by 10 Million Units

08 July 2024

|

Zaker Adham

Summary

Apple is anticipating a substantial increase in iPhone 16 sales compared to last year's model. According to a new supply-chain report, the company has increased its order of A-series chips from TSMC by 10 million units.

Strong Sales Projections for iPhone 16 The Chinese site CTEE reports that Apple has requested TSMC to prepare between 90 million and 100 million chips for the upcoming iPhone 16 lineup. This represents a significant increase from last year's order of 80 million to 90 million units, indicating that Apple expects higher sales for the iPhone 16 series.

Revised Chip Naming Strategy For the iPhone 15 series, Apple used the A17 Pro chip for the Pro models, while the base and Plus models received the previous year's A16 chip. This year, all iPhone 16 models will feature a chip labeled as A18. However, this does not mean that all models will have the same chip.

The base and Plus models are expected to have a slightly updated version of the A17 Pro chip, rebranded as A18. The iPhone 16 Pro and Pro Max will get a new A18 Pro chip, which will include significant advancements in AI and graphics capabilities.

AI Capabilities to Drive Sales Apple's confidence in increased sales is supported by the new AI features introduced in iOS 18, known as Apple Intelligence. Currently, only the iPhone 15 Pro and Pro Max support these features. To utilize the new AI capabilities, users with older models, including last year’s iPhone 15 or iPhone 15 Plus, will need to upgrade to the iPhone 16. Given these advancements, a 10 million increase in sales over the iPhone 15 lineup seems achievable.