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A16 Chip in iPhone 14 Pro Reportedly Costs Apple Over Twice as Much as A15 Chip

PinkyMacGodess said:
It would make sense to do the processing in the headset. It's going to be highly annoying if the data can't be delivered accurately. I have Bluetooth headset that I use when doing yard work, and they drop out quite a bit at times. Anything VR that has that problem isn't going to sell well, duh.
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Well Apple will make sure it does work properly… DUHHH ….. oh and yes your cheap amazon head phones prob do drop but my Airpod pros have never, I can leave my phone inside and walk around my house just fine….DUUUUUUUHHHHHHHHHHHH
 
perryt said:
"No way?" Do you have information about the yields on the new process? If the process is not as mature as planned, I can see lower yields (like only half the chips on the wafer meeting spec) driving up the unit costs. If less than half the chips are sellable but those sales have to cover the cost of processing the whole wafer it could lead to prices over 2x plan. People who really want the leading edge stuff seem willing to pay the premium. Low yields would also be consistent with the continued use of the previous chip for the non-pro models. Apple would not want to wait for improved yields so could go forward with the release schedule this way. (I have no visibility on this... but the assertion that there is NO WAY the new chip could actually cost more than 2x the old chip does not seem reasonable. This explanation is just one of the ways it could actually cost Apple more than 2x.)
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Look guy they keep everything the same and add a billion transistors…. Apple has this stuff to a science I mean wtf?!
 
The-Real-Deal82 said:
It’s completely irrelevant stating pre VAT prices though as that is not what the consumer pays or see as the advertised price. I keep seeing Americans on here telling others that iPhones are cheap in the UK and quoting a price with 20% VAT removed, but that is not the actual price that consumers pay or see advertised. Everything we buy here includes VAT whether it’s a litre of milk or a newspaper. Nobody looks at a RRP and deducts VAT to justify whether something is good value as all that counts is the actual price any product costs. Different mindsets in different countries I would say.
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It is absolutely relevant to state and compare pre-VAT and pre-sales tax prices as that reflects Apple's retail pricing before added government VAT/sales tax. The reason iPhones aren't broadly advertised in the U.S. with sales tax included is because sales tax can vary by states and cities. It is not one consistent percentage throughout the country but consumers still have to be pay it on top of Apple's price for the phone.

The purpose here was to compare what Apple itself is charging for phones not what Apple is charging plus what the government charges via VAT or sales taxes as the latter really has nothing to do with Apple.
 
Bigballs556 said:
Well Apple will make sure it does work properly… DUHHH ….. oh and yes your cheap amazon head phones prob do drop but my Airpod pros have never, I can leave my phone inside and walk around my house just fine….DUUUUUUUHHHHHHHHHHHH
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Well, thanks for that. They are 3M Worktunes, and not exactly 'cheap' DUHHHHH but you have a great future here I can tell...

I did wear my Air Pods under ear protectors and they worked flawlessly so why the Worktunes notoriously drop their connection is odd and unexpected. I just have to keep the source on the same side as where the antenna is believed to be. *shrug*
 
Apple_Gabe said:
I do think running apps and overall use on the 14 pro is incrementally more smoother, but not significantly different from the 13 pro. I read an article that said that the A16 Chips is actually just a more advanced 5nm process and not a true 4nm process like Apple was advertising. But what would be the ultimate version of the chip with the current technology, a 1nm process?
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The issue comes down to physics. Heat and interference. And the 4nm/5nm/6nm was and is a stretch. There were a bunch of posts about that last year I believe. They seem to call it what they want to call it apparently. It is what it isn't...
 
JPack said:
TSMC doesn't build N4 capacity unless there is contracted demand. Apple would have agreed to a price increase before TSMC built the lines.

You can't simply overclock a chip. Each of the blocks on the SoC are hand tuned for a certain target frequency. That's how Apple achieves great power efficiency. If you overclock, power and voltage will go up much faster than the clock.

$50 isn't trivial, but at the same time, Apple doesn't adjust prices annually. There is no way iPhone X and iPhone 14 Pro have the same materials cost even though both are $999.
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Knowing a bit about this space, there is no company in the world that will swallow $50 increase in production costs. Sorry, not even apple.

You can't simply overclock a chip? Of course you can. Binning and overclocking is a tried and true strategy.
 
FrozenDarkness said:
Knowing a bit about this space, there is no company in the world that will swallow $50 increase in production costs. Sorry, not even apple.

You can't simply overclock a chip? Of course you can. Binning and overclocking is a tried and true strategy.
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BOM cost increase for iPhone 11 to iPhone 12 already exceeds $50 due to 5G and A14. Yet, Apple didn't increase the price of iPhone 12 Pro. The margins for Pro devices are very healthy, not to mention premium buyers are more likely to spend on recurring Apple services like AppleCare+, iTunes, Apple Music, Apple Pay, App Store, etc.

www.counterpointresearch.com

Counterpoint

www.counterpointresearch.com www.counterpointresearch.com
 
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