Apple is gearing up to unveil its iPhone 16 with a new chip based on chipmaker ARM‘s latest V9 architecture, reported the Financial Times, citing sources.
The A18 chip, which will be revealed at an event on 9 September 2024, represents a key advancement for Apple, which relies on the iPhone for nearly half of its total revenues.
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Meanwhile, the Cupertino-based company’s adoption of the V9 chip design is a boon for Arm, with which Apple has a multi-year licensing agreement.
Arm’s chief executive, Rene Haas, has noted that the V9 technology could generate twice the royalties compared to the previous V8 generation.
Arm, a UK-based and US-listed company, earns revenue through licensing its chip architecture—a set of instructions forming the chip’s foundation—and through royalties.
The V9 architecture was launched by Arm in 2021.
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By GlobalDataApple has already incorporated the V9 architecture into its latest M4 MacBook chips, which it claims represent a “giant leap” in performance for the upcoming generation of its PCs.
Apple and Arm have not commented on the matter, the publication said.
The development comes as Apple is in the midst of redefining itself as an AI-centric company.
In June, it introduced a suite of features known as “Apple Intelligence,” including an improved Siri, custom emoji creation, photo editing with in-house AI models, and a partnership offering free access to OpenAI’s ChatGPT.
However, the computational demands of running AI models on a device that fits in your pocket necessitate advancements in chip technology.
The current Apple Intelligence features are only compatible with the company’s most advanced iPhone 15 Pro and Pro Max models, which house the A17 Pro chip based on Arm’s V8 architecture.
Following its IPO in September 2023, Arm’s shares have risen approximately 70% since the beginning of 2024, as the company expands into the PC, automotive, and industrial chip sectors and benefits from surge in AI chip investments.
Investors are keenly observing the iPhone 16 launch for any additional details Apple may provide regarding the consumer availability of these features.
Apple has indicated a phased feature rollout, with some being introduced initially and others expanded to more languages and regions subsequently.
Meanwhile, a developer beta test of iOS 18.1, which will introduce Apple Intelligence to the iPhone, is currently underway.
