Apple increases A18 chip orders in anticipation of high demand for iPhone 16

Apple has reportedly raised its order for next-generation chips from TSMC to between 90 million and 100 million units, following expectations of increased demand for the iPhone 16 series.

The initial chip order volume last year for the iPhone 15 series launch is believed to be in the range of 80-90 million units, suggesting that Apple is expecting higher demand for its 2024 devices in the range of 10 million units, according to a Taiwanese source. CTEE.

The arrival of Apple Intelligence in iOS 18 is expected to boost initial sales of the devices. One reason is that Apple Intelligence requires at least an iPhone 15 Pro to work, meaning owners of last year’s iPhone 15 and iPhone 15 Plus will miss out on Apple’s new AI features unless they upgrade to the iPhone 15 Pro or opt for one of the iPhone 16 models.

Last year, the iPhone 15 and iPhone 15 Plus were powered by the A16 Bionic chip — the same chip found in the iPhone 14 Pro models — while the iPhone 15 Pro and iPhone 15 Pro Max feature the A17 Pro chip built using TSMC’s second-generation 3nm process, also known as “N3E.” N3E is less expensive and delivers better yields than the previous generation N3B, according to TSMC.

All four models in this year’s iPhone 16 lineup are expected to use A18-branded chips manufactured using the N3E process. Despite the shift to N3E, the A18 chip in the iPhone 16 and iPhone 16 Plus will likely adopt the A17 Pro design that was used in the iPhone 15 Pro models. Meanwhile, the iPhone 16 Pro and ‌iPhone 16 Pro‌ Max will likely use an “A18 Pro”-branded chip, which could feature an upgraded Neural Engine with more cores allowing for improved AI/ML performance.

The standard iPhone 16 models could also be upgraded to 8GB of RAM, up from 6GB in the iPhone 15 models. This would bring all four iPhone 16 models to 8GB of RAM, which Apple has suggested is the minimum required to run large language models (the algorithms that power AI) locally on the device, rather than in the cloud.

Based on previous years, Apple is expected to launch the iPhone 16 series in the fall, around mid-September. For more information, be sure to check out our dedicated iPhone 16 and iPhone 16 Pro reports.