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Apple Expands TSMC Orders for iPhone 16, Shares Up 2.0% After Needham Reiterates Buy Rating

Jul 1, 2024, 12:46 PM

Apple Inc. (AAPL) has expanded its orders to Taiwan Semiconductor Manufacturing Company (TSMC) for A18 chips needed for the upcoming iPhone 16 series. The company plans to produce 90-100 million units of the iPhone 16, which will feature TSMC’s 3nm N3E process, improving camera and memory specifications, including an upgrade to 8GB of DRAM from 6GB. This upgrade is driven by increased AI capabilities requiring more memory. In addition, Needham has reiterated its Buy rating for Apple, maintaining a price target of $220. Following this announcement, Apple shares rose by 2.0%. The smartphone replacement cycle has extended to 36-40 months from the previous 24-30 months, and Apple may raise prices on high-end smartphones to subsidize lower-cost models, aiming to attract new consumers into its ecosystem.