HomeWinBuzzer NewsApple Seeks Wider iPhone Profit Margins with New CPU Strategy

Apple Seeks Wider iPhone Profit Margins with New CPU Strategy

Apple will separate the iPhone 14 range into Pro devices with new CPUs and non-Pro models with older processors.


In recent months, rumors have circulated that when the 14 arrives in the fall, it will come with two distinct variants. While the model selection will remain the same, will use different chips in premium models than the standard iPhone. New reports suggest this is a strategy will use on all new iPhones moving forward.

This means the iPhone 14 Pro and Pro Max will get the newest Bionic CPU Apple has. The regular iPhone 14 and other non-pro models will not get the latest and greatest chipset.

According to often-accurate Apple analyst Ming-Chi Kuo, the reason for this change is to enhance profit margins. In previous years, all new iPhone models have had the latest Bionic CPU on board. Apple has used other specs to differentiate between the models (notably the camera).

Moving forward – starting with the iPhone 14 – this will change. Apple is putting a clear line between the performance of Pro models compared to non-Pro models.


Essentially, Apple is hoping customers will want the best possible performance and be willing to pay more for premium iPhones. In other words, Apple wants to boost the sales of its Pro models and increase its profits.

Kuo points out that if customers take the bait the average price of an iPhone will increase, and Apple will rake in more cash. Of course, for consumers this means paying north of $1,000 if you want to experience the latest Apple processing capabilities.

While you may brush off the importance of the CPU, Apple's Bionic chips are routinely the best smartphone on the market. Each year, if you buy an iPhone with the latest A-processor, you likely have the best-performing smartphone around.

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Luke Jones
Luke Jones
Luke has been writing about all things tech for more than five years. He is following Microsoft closely to bring you the latest news about Windows, Office, Azure, Skype, HoloLens and all the rest of their products.

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