iPhone Gets a Major AI Upgrade with Arm’s Chip Tech, FT Reports!

  • Editor
  • September 9, 2024
    Updated
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Key Takeaways:

  • Apple is set to unveil its latest iPhone 16 series with a next-generation A18 chip utilizing ARM’s new V9 chip architecture, marking a significant shift in its AI strategy.
  • The integration of ARM’s V9 architecture represents a substantial boost for ARM, enhancing its market position due to increased royalties and solidifying its partnership with Apple.
  • Apple’s new AI features, under the “Apple Intelligence” branding, are expected to bring enhanced user experiences such as advanced natural language processing, real-time image recognition, and improved on-device AI functionalities.
  • The new developments will position Apple to compete directly with other manufacturers like Google, Samsung, and Motorola in the rapidly expanding market for AI-enabled smartphones.

Apple is set to launch its latest iPhone 16 series at the “It’s Glowtime” event at the Steve Jobs Theatre in Apple Park.

The Financial Times reports that the iPhone 16 will feature a next-generation A18 chip based on ARM’s newest V9 design architecture. This strategic decision by Apple is aimed at incorporating advanced generative artificial intelligence features into its smartphones.

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ARM’s architecture is foundational in nearly all smartphone chips, detailing the basic functionality of the central processor. Apple’s adoption of the V9 for the iPhone, which accounts for almost half of its total revenues, also represents a notable boost for ARM.

The two companies recently extended their licensing agreement through 2040, reinforcing their long-standing partnership.

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ARM CEO Rene Haas previously stated that the V9 architecture, which launched in 2021, brings in twice the royalties of the V8, the previous generation architecture that is currently used in the A17 Pro chips for iPhone 15 Pro and Pro Max devices.

Read More: Apple Glowtime Event Live: iPhone 16, Apple Watch 10, AirPods 4, and More Launching Today!

In May, Apple announced that it is using ARM’s V9 architecture for its latest line of M4 MacBook chips, touting the M4’s “giant leap” in performance.

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Adopting the same architecture for the iPhone 16 series is part of Apple’s broader strategy to maintain its competitive edge in the rapidly evolving market for AI-enabled smartphones.

Apple also introduced its “Apple Intelligence” offering in July, though it stated that some markets, including Europe, may not receive it this year.

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A developer beta for iOS 18.1, an update to iOS 18 that will bring Apple Intelligence to the iPhone, is currently ongoing.

The Apple Intelligence feature can only function on the company’s most advanced devices, such as the iPhone 15 Pro and Pro Max, which are equipped with the A17 Pro chip based on ARM’s previous V8 architecture.

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The decision to adopt ARM’s V9 architecture for its new iPhone series is crucial. Apple will face stiff competition from manufacturers like Google, Samsung, and Motorola, who also heavily invest in AI-enabled smartphones.

Research from Counterpoint Technology Market Research indicates that the share of generative AI-equipped smartphone shipments is projected to grow from 11% in 2024 to 43% by 2027, potentially reaching over 550 million units, representing nearly four times the growth over this period.

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By incorporating ARM’s cutting-edge chip design, Apple is positioning itself to lead in the competitive arsenal of AI-driven smartphones, leveraging its long-standing partnership with the company to enhance its new devices’ capabilities and performance.

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This move could positively impact both Apple’s market positioning and ARM’s financial prospects, given the anticipated growth in demand for AI-powered mobile technology.

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Dave Andre

Editor

Digital marketing enthusiast by day, nature wanderer by dusk. Dave Andre blends two decades of AI and SaaS expertise into impactful strategies for SMEs. His weekends? Lost in books on tech trends and rejuvenating on scenic trails.

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