:max_bytes(150000):strip_icc()/GettyImages-2171029444-c931d5fed3714c9e93573eabf55ca82b.jpg "These Tech Companies Could Benefit From Sales of Apple’s AI-Powered iPhone 16")
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Key Takeaways
- Apple unveiled the iPhone 16 on Monday. The new phones will hit store shelves next week.
- The iPhone 16 runs on an A18 chip based on Arm Holdings technology and powered by a Taiwan Semiconductor Manufacturing processor.
- Apple has also partnered with Microsoft-backed OpenAI to integrate ChatGPT into iOS, iPadOS, and macOS.
Apple’s (AAPL) new iPhone 16 is coming to stores next week. But the tech giant isn’t the only company that stands to benefit from sales of the artificial intelligence-powered phone.
The latest iPhone, officially announced Monday, is powered by the A18 chip, which according to a Monday Financial Times report and other sources is based on an Arm Holdings (ARM) design. Shares of Arm jumped 7% Monday following the report; they were retreating Tuesday.
The A18 chip runs on a processor made by Taiwan Semiconductor Manufacturing Co. (TSM), Apple’s primary chip manufacturer. American depository receipts of TSMC gained nearly 4% Monday but have also given back some gains today.
Both companies could benefit if the iPhone 16 drives “Cupertino’s biggest upgrade cycle in its history,” as analysts at Wedbush predicted over the weekend. Globally, about 300 million iPhones have not been upgraded in more than four years, which Wedbush says could mean more than 240 million iPhone units sold in fiscal 2025.
In terms of software, Apple has partnered with OpenAI, backed by Microsoft (MSFT) to integrate ChatGPT into iOS, iPadOS, and macOS.