[RUMOR] Apple’s new business strategy leaves entry-level and mid-range iPhones with older chipsets

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Apple may soon take the “Pro” in “iPhone Pro” more seriously.

Popular Apple Analyst Ming Chi Kuo recently revealed in a blog post that Apple has a new business strategy that leaves entry-level and mid-range iPhones with older processors, while Pro models get the latest.

Kuo previously reported that only iPhone 14 Pro models would feature Apple’s latest processor in March due to COVID-19-induced semiconductor shortages.

Details on Apple’s Pro Chip Exclusive

Apple is said to be changing the business strategy that will allow it to install its latest chips on the pro models of its future iPhones, including the iPhone 14, according to Kuo’s report.

Similar to his March report, Kuo mentioned in his latest Medium blog post that Apple plans to exclusively install its upcoming A16 processor on two iPhone 14 Pro/high-end models, which could be the iPhone 14 Pro. and the iPhone 14 Pro Max.

In addition, through the exclusivity of the A16, Apple will significantly increase the proportion of shipments of new high-end iPhone models in 2H22 to 55-60%, which is a slight increase from the proportion of 40-50% shipments used by Apple in the past.

Finally, Kuo revealed that Apple will only equip the Pro and Pro Max models with its latest processors in the future, which will make both models more present on store shelves than the entry and mid-range models. range.

This means that the base iPhone 14 and iPhone 14 Max will only have an A15 chip while the Apple 14 Pro and Pro Max models will receive the A16.

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However, based on Apple’s new business strategy, the company will give an older chip to the base and Max models of an iPhone while giving the latest to its Pro and Pro Max models in the future.

So once there’s an iPhone 15 and there’s an upcoming A17 processor, the base and Max models of the iPhone 15 will get the A16 chip, while the Pro and Pro Max models of the iPhone 15 will get the A16 chip. ‘iPhone 15, which will have more units, will receive the A17. rather than the A16.

The reason Apple makes its latest chips exclusive to high-end models

9to5Mac mentioned that by making the A16 and future newer processors exclusive to the Pro and Pro Max models, Apple would be able to entice more people to buy those models instead of the cheaper base and Max models, which which would drive up the price of the average iPhone.

Exclusivity and higher prices also mean that Apple could make a higher profit from its iPhone sales than before.

Additionally, the increased price of high-end iPhone 14 models will benefit Apple’s major suppliers of high-end components for the rear camera, including Sony, Largan, Alps, and LG Innotek.

Sony is responsible for supplying Apple with the CMOS image sensors, while Largan supplies Apple’s lenses for its rear camera. On the other hand, Alps provides Apple with the voice coil motor and/or optical image stabilization it needs, and LG Innotek is responsible for providing Apple with the CCMs.

If Kuo’s report turns out to be true, then the days of Apple having the same chip for an entire lineup are over. However, it’s not as bad as it looks.

The A15 chip that Apple will install in the affected iPhone 14 models will have almost the same performance as the high-end iPhone 13 models, as they will receive 6 GB of RAM instead of 4 GB, as well as a GPU at five cores used by the iPhone 13 Pro models.

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