The pricing of the iPhone 16 series may be the same as that of the previous generation, and the entire series will use the A18 chip

TrendForce’s latest survey reveals that Apple’s iPhone 16 series will feature the new A18 and A18 Pro processors. To support Apple Intelligence, Apple will upgrade the DRAM. Despite slightly higher costs, Apple is expected to keep prices steady due to the downturn in the smartphone market. The company aims for a cautious pricing strategy.

TrendForce said the four iPhone 16 models will use the new A18 and A18 Pro processors based on TSMC’s 3nm process. This breaks the past practice of using previous generation processors. This change may be related to processor cost considerations. Apple has upgraded the DRAM capacity in the iPhone 16 and 16 Plus. All four new models now feature LPDDR5X 8GB, supporting the Apple Intelligence function.

Apple Intelligence is a highlight of this year’s iPhone 16 series. At the same time, Apple is also working hard to improve the accuracy of Siri and is working with ChatGPT to improve AI performance.

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The total cost of the new iPhone 16 models has increased slightly due to higher memory prices over the past year. However, Apple is expected to maintain a cautious pricing strategy due to the overall downturn in the smartphone market. TrendForce notes that the pricing for the new models will likely remain the same as the iPhone 15 series, though it may rise slightly due to increased costs. To maintain profitability and boost sales, Apple could follow last year’s Pro Max strategy. This would involve increasing the base capacity to 256GB, softening the impact of any price hikes.

TrendForce estimates Apple will produce 86.7 million units of its four new phones in the second half of 2024, an 8% annual increase. Samsung currently leads in production, but Apple is closing the gap. By the end of the year, Apple could surpass Samsung and become the market leader in smartphone production.
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