“Before Chipworks published its in-depth tear-down of the Apple iPhone 7, I had expected that the A10 Fusion chip inside the device would measure in at around 150 square millimeters,” Ashraf Eassa writes for The Motley Fool. “Such a chip would be substantially more expensive than the company’s prior generation A9 processor, which measured in at 104.5 square millimeters.”

“Although Chipworks’ tear-down does reveal that the A10 is larger than the A9, Apple appears to have performed something of a miracle with the A10 in terms of chip size,” Eassa writes. “According to Chipworks, the A10 chip measures in at 125 square millimeters, or approximately 20% larger than the TSMC-built A9 from last year. The larger size means that Apple will be able to get fewer chips from each silicon wafer that it buys from TSMC.”

“There’s a pretty significant difference between 125 square millimeters and 150 square millimeters in terms of chip cost,” Eassa writes. “Thanks to Apple’s ability to pack more functionality into a given amount of space than it could with the prior generation A10 chip, it was able to save — at least per this, admittedly crude, estimate — nearly $5 per chip. It may not seem as though a savings of roughly $4.85 per chip is a big deal, the reality of the situation is that this savings when multiplied across the 120 million-plus iPhone 7 and iPhone 7 Plus phones that the company is likely to ship over the next year is significant — approximately $582 million.”

Read more in the full article here.

MacDailyNews Take: No other company can match Apple’s iPhone and the gulf between the iPhone and the iPhone wannabes is growing significantly. With little or no profit in Android phones, no other company can remotely keep up with Apple’s investment in smartphone innovation. Soon, even the blindest of fragmandroid settlers will be able to see it.

SEE ALSO:
The iPhone’s new A10 Fusion chip should worry Intel – September 16, 2016
Apple’s remarkable new A10, S2, W1 chips alter the semiconductor landscape – September 15, 2016
Wired reviews Apple’s iPhone 7/Plus: ‘Fantastic’ – September 14, 2016
Sprint, T-Mobile: iPhone 7/Plus pre-orders up 4X over last year; Apple shares surge – September 13, 2016
USA Today’s Baig reviews Apple’s iPhone 7/Plus: ‘A strong handset for sure’ – September 13, 2016
WSJ reviews Apple’s iPhone 7/Plus: ‘Get over the headphone thing and upgrade’ – September 13, 2016
Mossberg reviews Apple’s iPhone 7/Plus: It’s a great phone, but where’s my headphone jack? – September 13, 2016
The Verge reviews Apple’s iPhone 7/Plus: ‘The future in disguise’ – September 13, 2016