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

Apple's new A16 Bionic chip in the iPhone 14 Pro and iPhone 14 Pro Max costs $110 to produce, making it over 2.4× as costly as the A15 chip in iPhone 13 Pro models released last year, according to a Nikkei Asia report.

A16 iPhone 14 Pro
The A16's higher cost is likely due in part to the chip being manufactured based on TSMC's 4nm process, while the A15 is a 5nm chip. iPhone chips could continue to increase in price as miniaturization continues, with rumors suggesting the A17 chip in iPhone 15 Pro models will be based on TSMC's 3nm process, and a DigiTimes report this week claiming that TSMC will begin volume production of 2nm chips in 2025.

Geekbench 5 benchmark results indicate the A16 chip delivers around 15% to 17% faster multi-core performance compared to the A15 chip. Only the iPhone 14 Pro and iPhone 14 Pro Max are equipped with the A16 chip, while the iPhone 14 and iPhone 14 Plus have the same A15 chip with a five-core GPU as found in iPhone 13 Pro models.

In collaboration with Fomalhaut Techno Solutions, a Japanese research firm specialized in reverse engineering and bill-of-materials analysis, Nikkei found that average production costs have increased about 20% across the iPhone 14, iPhone 14 Pro, and iPhone 14 Pro Max compared to the equivalent previous-generation models.

The report claims that given Apple did not raise prices for its latest iPhone models in the U.S. and some other markets, the higher production costs mean that the company's profit margins have "likely shrunk," but prices did increase in key markets like the U.K., Australia, and Japan amid a strong U.S. dollar relative to other currencies.

Related Forum: iPhone

Popular Stories

iPhone SE 4 Vertical Camera Feature

iPhone SE 4 Production Will Reportedly Begin Ramping Up in October

Tuesday July 23, 2024 2:00 pm PDT by
Following nearly two years of rumors about a fourth-generation iPhone SE, The Information today reported that Apple suppliers are finally planning to begin ramping up mass production of the device in October of this year. If accurate, that timeframe would mean that the next iPhone SE would not be announced alongside the iPhone 16 series in September, as expected. Instead, the report...
iPhone 17 Plus Feature

iPhone 17 Lineup Specs Detail Display Upgrade and New High-End Model

Monday July 22, 2024 4:33 am PDT by
Key details about the overall specifications of the iPhone 17 lineup have been shared by the leaker known as "Ice Universe," clarifying several important aspects of next year's devices. Reports in recent months have converged in agreement that Apple will discontinue the "Plus" iPhone model in 2025 while introducing an all-new iPhone 17 "Slim" model as an even more high-end option sitting...
Generic iPhone 17 Feature With Full Width Dynamic Island

Kuo: Ultra-Thin iPhone 17 to Feature A19 Chip, Single Rear Camera, Semi-Titanium Frame, and More

Wednesday July 24, 2024 9:06 am PDT by
Apple supply chain analyst Ming-Chi Kuo today shared alleged specifications for a new ultra-thin iPhone 17 model rumored to launch next year. Kuo expects the device to be equipped with a 6.6-inch display with a current-size Dynamic Island, a standard A19 chip rather than an A19 Pro chip, a single rear camera, and an Apple-designed 5G chip. He also expects the device to have a...
maxresdefault

These 5 Features Will Make the iPhone 17 the Biggest Update in Years

Monday July 22, 2024 4:02 pm PDT by
The upcoming iPhone 16 models that we're expecting to see in September are going to be quite similar to the iPhone 15 models, but rumors suggest that Apple is making big changes in 2025. We've been hearing hints of an all-new device in the iPhone lineup, and it may be the most expensive iPhone Apple has offered to date. Subscribe to the MacRumors YouTube channel for more videos. New 'Slim'...
iOS 18 on iPhone Feature

Everything New in iOS 18 Beta 4

Tuesday July 23, 2024 1:08 pm PDT by
Apple released the fourth beta of iOS 18 today, introducing small changes to a number of features throughout the operating system. There are no big additions in this beta, but Apple is continuing to refine existing settings and design choices. Apple plans to continue updating iOS 18 over the next few months, with the update set to be released this fall. We've rounded up all of the changes...
iPhone SE 4 Thumb 1

iPhone SE 4 Rumored to Launch Early Next Year With OLED Display, 48MP Camera, and More

Monday July 22, 2024 7:22 am PDT by
The fourth-generation iPhone SE will offer a series of major upgrades over the current model, the leaker known as "Ice Universe" claims. The information was listed in a post on Weibo, which also detailed the specifications of the iPhone 17 lineup. As previously rumored, the fourth-generation iPhone SE is expected to feature Face ID and USB-C, marking a major upgrade from current and previous ...
iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Less Than Two Months Away: Everything We Know

Thursday July 25, 2024 5:43 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
iPhone 17 Plus Feature Purple

iPhone 17 Rumored to Feature Mechanical Aperture

Tuesday July 23, 2024 9:32 am PDT by
Apple is planning to release at least one iPhone 17 model next year with mechanical aperture, according to a report published today by The Information. The mechanical system would allow users to adjust the size of the iPhone 17's aperture, which refers to the opening of the camera lens through which light enters. All existing iPhone camera lenses have fixed apertures, but some Android...

Top Rated Comments

1557750 Avatar
24 months ago
And people complain about them using last years chips in base model 14’s this year.

I hope this trend continues. Chips cost more, so Pro should get them because they cost more.

Bring on the hate. ???
Score: 23 Votes (Like | Disagree)
magicschoolbus Avatar
24 months ago
It’s a great chip. The 14 Pro Max is blazing fast compared to my 11 Pro Max. I can’t believe how quick it is.
Score: 16 Votes (Like | Disagree)
macsplusmacs Avatar
24 months ago
Waiting on Google to take this as a compliment.

Geez, What is in the water cooler at that company?
Score: 13 Votes (Like | Disagree)
ipedro Avatar
24 months ago

I can't see that the phone needs a faster chip. My guess is the only reason for using the new chip is the energy saving.
The iPhone is going to need as much processing power as they can fit into it because it'll be running the AR glasses and that kind of superimposition of graphics on real world objects is processor intensive.

The march towards miniaturized processing power, equivalent to what we've seen in full blown computers, and power efficiency while achieving it, is all in service of wearable tech on our wrists and soon, in glasses.
Score: 12 Votes (Like | Disagree)
JW Pepper Avatar
24 months ago
I can't see that the phone needs a faster chip. My guess is the only reason for using the new chip is the energy saving.
Score: 10 Votes (Like | Disagree)
TheYayAreaLiving ?️ Avatar
24 months ago
The performance of the Pro/Pro Max models speaks for itself. It's worth it!
Score: 10 Votes (Like | Disagree)