Apple iPhone 16 set to launch with Arm’s next-gen AI chip

The A18 chip marks a significant progress for Apple, as the iPhone accounts for almost half of the company’s overall income.

Apple is preparing to launch its iPhone 16, featuring a new processor built on the latest V9 architecture from chip manufacturer ARM, according to reports from the Financial Times, which cited insider information.

The A18 chip is set to be unveiled at an event on September 9, 2024, marking a significant milestone for Apple. The company depends on the iPhone for close to half of its overall revenue.

At the same time, Apple's use of the V9 chip design is a significant advantage for Arm, thanks to their long-term licensing agreement.

Arm's CEO, Rene Haas, pointed out that the V9 technology has the potential to double the royalties earned compared to the earlier V8 version.

Arm, a company based in the UK and listed in the US, generates income by licensing its chip designs, which are the fundamental instructions that make up the chip, as well as by collecting royalties.

Arm introduced the V9 architecture in 2021.

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Apple has integrated the V9 architecture into its new M4 MacBook chips, which the company asserts marks a significant advancement in performance for the next generation of its computers.

According to the report, neither Apple nor Arm has provided any comments on the issue.

This update occurs as Apple works to transform itself into a company focused on artificial intelligence.

In June, the company launched a new set of features called "Apple Intelligence." This includes an upgraded version of Siri, tools for creating personalized emojis, photo editing powered by its own AI models, and a collaboration that provides free access to OpenAI's ChatGPT.

Nonetheless, the need to operate AI models on a compact device calls for improvements in chip technology.

The latest Apple Intelligence features are exclusively available on the company's top-tier iPhone 15 Pro and Pro Max models, which are powered by the A17 Pro chip that utilizes Arm's V8 architecture.

Since going public in September 2023, Arm's stock has jumped around 70% in early 2024. This increase is fueled by the company’s move into markets like PCs, automotive, and industrial chips, along with a significant rise in investments for AI chips.

Investors are closely watching the launch of the iPhone 16 to see if Apple will reveal more information about when these features will be available to consumers.

Apple has announced that it will gradually introduce new features, starting with a few at first and then later expanding them to include additional languages and regions.

At the same time, a developer beta trial for iOS 18.1 is in progress, which will bring Apple Intelligence features to the iPhone.