Apple’s iPhone 16 is set to debut on Monday, featuring a next-generation chip based on Arm’s latest design architecture. This marks a significant move by the Cupertino tech giant to integrate generative artificial intelligence into its smartphones.
At the event, Apple will unveil the A18 chip, which utilizes SoftBank-owned Arm’s V9 chip design, according to sources familiar with the Financial Times. The adoption of the V9 architecture in the iPhone, which generates nearly half of Apple’s revenue, is a win for Arm, which has a long-term licensing agreement with Apple. Arm CEO Rene Haas has noted that V9 architecture earns double the royalties compared to its predecessor, V8.
Arm’s chip architecture outlines a set of instructions that serve as the foundation for the chip’s design. The UK-based, US-listed company generates revenue through licensing and royalties, having introduced the V9 in 2021.
Apple has already implemented Arm’s V9 architecture in its latest M4 MacBook chips, unveiled in May, which delivered a “giant leap” in performance. The next generation of Apple’s PCs, powered by the M4, is expected to be announced soon.
Both Apple and Arm have declined to comment on the news. Apple, however, is in the midst of rebranding itself as an AI-centric company, having introduced a suite of features in June under the banner of “Apple Intelligence.”
The new AI-driven features include a more advanced Siri, custom emoji generation, and photo editing using Apple’s in-house AI models. Additionally, a partnership will offer users free access to OpenAI’s ChatGPT, alongside the introduction of “Private Cloud Compute,” a system designed to secure user data when it interacts with Apple’s models outside their device.
The heightened computing power required to run AI models on a compact device makes chip advancements crucial. Apple Intelligence is currently compatible only with the iPhone 15 Pro and Pro Max, which are powered by the A17 Pro chip based on Arm’s previous V8 architecture.
Following its successful IPO in September last year, Arm’s stock has surged approximately 70% since the start of 2024, driven by diversification into PC, automotive, and industrial chips, as well as a surge in AI chip investment.
Investors are closely watching the iPhone 16 launch for more details on when these AI features will be available to consumers. Apple has indicated a staggered rollout, with some features debuting first, and additional languages and regions added over time.
Meanwhile, a developer beta for iOS 18.1—the update that will bring Apple Intelligence to the iPhone—is currently underway.