Apple recently unveiled the new iPhone 14 and iPhone 14 Pro models, which differ greatly from one another. Apple made sure that the “Pro” models are faster in terms of performance, even though the camera and the display are what visually distinguish both smartphones. The A15 chip is used in the iPhone 14 and iPhone 15 Plus models, while the A16 Bionic chip, the most recent and greatest, is found in the iPhone 14 Pro variants. The A16 Bionic chip, however, costs Apple more than twice as much as the A15 chip, according to new research.
The A16 Bionic chip in the iPhone 14 Pro versions costs Apple $110 to produce, according to a Nikkei Asia article. The price is 2.4 times higher than what Apple paid for the A15 chip in the iPhone 13 Pro from the previous year. One of the likely causes of the price hike is that the chip is produced using TSMC’s 4nm technology. The A15 Bionic chip from the previous year is a 5nm device in comparison.
It makes sense that chip prices would rise as chip downsizing progresses. The A17 Bionic chip from Apple, which will power the iPhone 15 Pro next year, is reported to be built using TSMC’s 3nm manufacturing process. Additionally, it was anticipated that TSMC would start manufacturing 2nm chips in large quantities in 2025. Going forward, we can anticipate significant processor price increases, which may translate into higher iPhone costs.
Compared to the Apple A15 Bionic from the previous year, the A16 Bionic chip performs 15 to 17 percent faster in multi-core scores.
Apple installed the A15 Bionic chip in the ordinary iPhone 14 and iPhone 14 Plus models instead of the A16 Bionic chip, which is only present in the iPhone 14 Pro variants. The latter, which has a five-core GPU, is the same technology that drives the iPhone 13 Pro models.
In partnership with Fomalhaut Solutions, Nikkei Asia discovered that the average production cost for the iPhone 14 and iPhone 14 Pro has increased by 20% overall. The article also asserts that because Apple did not raise the price of the smartphone in certain other countries and the United States, its profit margins may have reduced.
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