This Apple's Chip, Coming To An End?

This Apple's chip, Coming to an End?

0200-36691 RING, SINGLE, LOW PROFILE, 150MM SMF

0200-09216 RING, PEDESTAL, QUARTZ, 6"

 

Wired said in its latest article that we've been saying goodbye to Apple's Lightning cable for a while, and after the company's September launch event, the goodbye seems to be even closer. With the release of a large number of devices, Apple has transitioned all of its flagships to USB-C. However, if you look closely, the proprietary connectors we know are still hidden in some corners of their product lines.

The Lightning connector was first released in 2012 alongside the iPhone 5 as an alternative to another proprietary charger (the bulky and fail-prone 30-pin connector). Not only is Lightning much smaller, leaving more room for other components inside the device, such as a larger battery, but it also raises the bar for durability. Plus, it's reversible, so it can be plugged in no matter how you plug it in. However, the proprietary charger also gave Apple control, and they also made a lot of money with the cable.

But how much longer?

Each Lightning connector has a small Apple chip built into it that regulates the voltage, which while this improves security, but also allows the company to collect license fees from third-party accessory manufacturers to take advantage of the Lightning port through the company's Made for iPhone program. It was easy to see why it wanted to adhere to that standard for as long as possible.

Let's go back to September 12, 2012, when Phil Schiller, Apple's senior vice president of global marketing, first introduced the Lightning connector and iPhone 5 to the world.

"The iPhone has been using the iPod 30-pin connector that we first introduced in 2003 since the beginning, and it's been working well for nearly a decade," he said. "But a lot has changed since we first invented this 30-pin connector."

When Schiller introduced the Lightning connector, he claimed several advantages over the 30-pin connector: an all-digital, 8-signal design; adaptive interface; improved durability; Reversible, easier to use, and 80% smaller. In the iPhone 5 press release, Apple also introduced the new connector in a short sentence: "The iPhone 5 comes with a new Lightning connector, which is smaller, smarter, and more durable than the previous one. The all-digital Lightning connector has an adaptive interface that uses only the signals needed for each accessory and is reversible, so you can connect to the accessory instantly. "

Apple is well aware that changing the type of interface on the iPhone will be opposed, but it has tried to focus on the positives. At the press conference, Schiller explained the shift this way:

"From the beginning, the iPhone used the iPod's 30-pin connector, which was originally introduced in 2003 and has been working well for nearly a decade. But a lot has changed since we first invented that 30-pin connector.

A lot of what we used to have to do over the web, can now be done wirelessly. We now use Bluetooth to connect speakers, headphones, and in-vehicle systems. We use Wi-Fi...... AirPlay to your TV or stereo. We can now sync to iTunes via Wi-Fi. The best part is that thanks to iCloud we can download everything wirelessly and even back up to the cloud.

A lot of things have changed, and it's time for connectors to evolve. And that's exactly what we did.

Our new connector is called Lightning. That's why we now include Thunderbolt and Lightning in our connector strategy. This connector is a modern connector for the next decade. All-digital, eight-signal design. It adapts to the signals needed for the different accessories you may plug in.

Thunderbolt and Lightning. This connector is a modern connector for the next decade. All-digital, eight-signal design. It adapts to the signals needed for the different accessories you may plug in.

It's more durable and easier to use because now you can plug in from any direction. And that's okay. The best thing for the engineering team is to make a product like this, which is 80% smaller than before. This is a huge step forward for the thinnest smartphone in the world. We're working with accessory manufacturers to have them integrate Lightning connectors into products you may choose to buy, for example, this holiday season. We have great partners to work with like Bose, JBL, Bowers and Wilkins, Bang and Olufsen and many more. "

It was this shift that allowed Apple to earn an astonishing amount of revenue over the next decade with a single cable.

A chip, lying down to earn money

In the previous report, we also mentioned Apple's made for iPhone (MFi) program, which involves connectors including original base connectors, Lightning connectors, and headphone jacks. and AirPlay support. Companies that join the MFi program must pass a certification test before they are authorized to display the MFi-related logo on their packaging.

The Apple MFI program guarantees that the accessories you purchase have been tested and approved by Apple. Apple charges a 10% fee on products with the logo, which the media calls a "tax." Licenses are available for products that use an extended iPod headphone jack or dock connector.

This is accompanied by the Apple MFI (Made for iPhone/iPad) chip, which is a microcontroller or integrated circuit that Apple requires accessory manufacturers to integrate into their products to ensure compatibility and functionality with Apple devices. These chips are a form of authentication and authentication that verifies that the accessory is designed to meet Apple's standards for quality, safety, and performance.

MFI chips are commonly used in Lightning cables, chargers, headphones, and other accessories. They enable safe and efficient charging, data transfer, audio output, and more, while ensuring that accessories don't damage connected Apple devices. Essentially, the MFI chip acts as a bridge between the accessory and the Apple device, ensuring a seamless and secure connection. This certification program is Apple's way of ensuring that users have a consistent and reliable experience on their devices and compatible accessories.

According to the data, the MFi (Made for iPhone/iPad/iPod) certification program has a long history, growing alongside Apple's iconic product line. The program was launched at the Macworld Expo in 2005 and was originally called "Made for iPod." Its main focus is to certify headphones and cables with control units designed specifically for iPods.

Initially, the cost of MFi was rumored to be as high as $10 per device, or 10% of the total retail price of the accessory, whichever is greater. It was later adjusted to $4 each. According to Bloomberg, Apple has built a vast ecosystem of Lightning accessories worldwide over the past decade, and the Cupertino giant could earn tens of millions of dollars per quarter from licensing fees.

According to sources, Apple's commissions and licensing fees earned through the MFi program make up a significant portion of Apple's cable-related revenue, totaling $10 billion. It's no wonder that the company has stuck to this plan.

However, in June 2023, the European Union passed legislation to support USB-C as a universal cable for all personal devices, including mobile phones, tablets, computers, headphones, and more. The government allows companies to transition to USB-C by the end of 2024. Europe is a huge market for Apple, with the company generating $95 billion in revenue from the continent in fiscal year 2022. As a result, Apple is faced with a choice: whether to keep $10 billion in cable revenue or about $100 billion in revenue from the European market.

That being said, the steady migration of the USB-C interface actually began with Apple's own initiative when it launched the iPad Pro in 2018. In 2020, the iPad Air followed, followed by the iPad Mini in 2021. Then there's the iPhone in 2023.

Whether Apple really believes this or not, the move to USB-C doesn't seem to be holding Apple back. At a recent hardware launch, Apple took the opportunity to move the rest of the AirPods series to USB-C – finally updating the AirPods Max to that format and introducing it to the new AirPods 4. So what Lightning products are left?

But for the selling old generation of iPhone and the first generation of Apple Pencil ,the current product that only owns the lighting connection function is Magic Keyboard, Magic Mouse and Magic Trackpad. And these Mac accessories will be updated to USB-C by the end of this year.

What is written at the end.

There is no doubt that Apple is a well-deserved giant in the field of smartphones and even chips. The company's leadership and investment in technology have also made them a global target. Even the idea of making money in Lighting has opened the eyes of many operators.

Although, now their move towards Type C is a foregone conclusion. Abandoning the Lightning connector will inevitably affect Apple's cash flow. But there are reports that the company may develop a certified chip specifically for the USB-C interface, which will be used in the iPhone series of phones and related MFI accessories. As a result, existing Type-C cables may not be recognized by the new iPhone, or may not be able to charge quickly.

However, so far, we don't seem to have seen any reports of this, do you think this is possible?

*Disclaimer: The content of the article is the author's personal point of view, and the reprint of Semiconductor Industry Insight is only to convey a different point of view, which does not mean that Wuxi Chinsor Technology agrees with or supports the view.