Earlier this year, an intriguing report from highly acclaimed analyst Ming-Chi Kuo revealed that Apple could keep the new A16 chip exclusively for iPhone 14 Pro models, while regular iPhone 14 models get last year’s A15 chip. In a new report, Kuo said that entry-level and mid-range iPhone models will no longer feature 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 retain the same design as the iPhone 13 with minimal internal updates, the Pro line will get more attention with a new screen design and significant camera upgrades.
This won’t be the first time Apple has kept major updates such as a new design exclusive to more expensive iPhone models. In 2017, the iPhone X was introduced with a completely new design, Face ID, and other new technologies, while the iPhone 8 and iPhone 8 Plus were simply improved versions of the iPhone 7.
However, both the iPhone 8 and iPhone X feature the same A11 Bionic chip. Apple has followed this strategy in subsequent years with the iPhone XR and iPhone XS, iPhone 11 and iPhone 11 Pro, and so on. Now everything seems to change.
Following Kuo’s report, both , and Bloomberg independently confirmed that only two of the four iPhone 14 models will receive the new, faster chip. Although some analysts believe that Apple will use a more powerful version of the A15 chip with 6 GB of RAM instead of 4 GB in new phones, the architecture will be the same as in the iPhone 13 chips.
At first we thought this might be a temporary move due to the global chip shortage, but now Kuo 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. If previously it was expected that by the end of 2022 the iPhone 14 Pro will account for 40% to 50% of sales of new models, now this estimate has been raised to 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 their latest and greatest chips.
Keeping the new processor for the more expensive iPhone models will certainly lead to more people buying those models instead of the cheaper ones, pushing 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 also benefit camera suppliers for high-end iPhones.
In the future, the latest processor chip will be exclusive to high-end iPhone models, so a large proportion of the supply of high-end iPhone models will become the norm, favoring high-end camera component suppliers.
If this is true, then it seems that the days when the entire iPhone lineup was equipped with the same new chip are over. On the other hand, it didn’t come as a surprise since Apple is doing something similar with the iPad line. More expensive models are equipped with the same chips as Macs, while cheaper iPad models remain with iPhone chips.
iPhone 14 launch and availability
If all goes according to plan, Apple will likely introduce 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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