Apple's upcoming iPhone 16 series is expected to feature a DRAM upgrade to support core Apple Intelligence features and will be powered by the new A18 and A18 Pro processors.
This is according to TrendForce, which says the series will make its debut this month, with pre-orders from 13 September and general availability from 20 September.
The excitement around Apple Intelligence has been building since the Apple Worldwide Developers Conference, with the four new models expected to have a combined production volume of 86.7 million units in the second half of 2024, it notes. This production volume will mark an 8% year-on-year increase.
According to TrendForce, Apple Intelligence is a highlight of the iPhone 16 series, which will be officially announced on 9 September.
Apple Intelligence is the personal intelligence system that puts powerful generative models at the core of iPhone, iPad and Mac devices, and powers new features to help users communicate, work and easily express themselves.
While the large language model parameters on Apple’s devices are not as extensive as those on Android phones, Apple is expected to achieve superior system integration as a result of its closed ecosystem, self-developed processors and strong control over app development, says TrendForce.
“All four iPhone 16 models will utilise Taiwan Semiconductor Manufacturing Company’s new 3nm process for the A18 and A18 Pro processors, breaking from the usual practice of re-using the previous generation's processor in some models.
“This shift is likely driven by cost considerations, as the previous generation's 3nm process is more expensive than the current N3E process. As a result, Apple has chosen to use the more cost-effective N3E technology across all models.”
TrendForce points out that Apple Intelligence will gradually roll out more features and support for additional languages. However, its functionality in China remains unclear.
Apple is also focusing on improving Siri’s accuracy and has partnered with ChatGPT to boost artificial intelligence performance.
Looking at total production for 2024, Apple is currently close to Samsung, the market leader, and could potentially surpass Samsung by the end of the year to become the top smartphone manufacturer by market share for the first time, notes the research firm.
The overall cost of the new iPhone models has slightly increased due to a significant rise in memory prices over the past year. However, considering the current downturn in the smartphone industry, Apple is expected to maintain a cautious pricing strategy, it adds.
“The USD pricing for the four new models launched this year is likely to remain on par with the iPhone 15 series, or see a slight increase to balance higher costs, while driving sales and maintaining profitability.
“The iPhone 16 Pro, featuring a periscope lens, may follow last year's Pro Max strategy by starting with a base storage capacity of 256GB, which could help mitigate the perception of a price increase by offering more storage.”
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