Apple apparently has to pay significantly more for the A16 SoC in the iPhone 14 Pro and iPhone 14 Pro Max than for the previous model, the A15. This is reported by the business journal Nikkei Asia, which appears in Japan, citing informed circles.
According to the information, Apple’s sole foundry, TSMC, based in Taiwan, up to 2.4 times more money compared to the predecessor A15 spend to produce the system-on-chip. That’s $110 per unit. There had been rumors before that TSMC wanted more money from Apple for its chips.
More complex, but not much more complex
TSMC uses its in-house 4nm process on the A16, while the A15 still uses the veteran 5nm process. The narrower structure makes the SoC more complex, but not as much as would have been the case with a larger leap. In benchmarks, the A16 delivers around 15 percent more performance than the A15 in multi-core operation. Apple is also installing the A15 in the iPhone 14 and 14 Plus, which is said to be a bit drilled and therefore slightly faster than the model in the iPhone 13.
It remains unclear why the A16 is so much more expensive than the A15 – TSMC may also be passing on price pressure from its suppliers to Apple. The really next big leap in the iPhone is only planned with the iPhone 15. The upcoming A17 chip is to be built for the first time in TSMC’s new 3 nm process. This differs more from older processes; When switching from 5 to 4 nm, TSMC had to do less work, they say.
iPhone 14 more expensive overall
The other components in the iPhone 14 are also said to have become more expensive. According to Nikkei Asia, together with the Japanese research company, prices can be expected to rise by 20 percent across the entire product line. Their Bill of Materials (BoM) calculation arrives at this increase compared to their respective iPhone 13 equivalents.
It remains unclear whether all of this also costs Apple a margin. The group had increased the prices for its devices, some of them significantly, so there is no longer an iPhone mini model that rounded off the range at the bottom. Entry into the iPhone 14 world is only possible from 1000 euros without a mobile phone contract. If you want, you can now pay up to 2100 euros for an iPhone – that’s how much the iPhone 14 Pro Max with 1 TB of storage costs.
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