Apple reportedly delayed its M3 SoC and not A17 Bionic due to poor sales

Apple is expected to release two 3nm chipsets later this year, the A17 Bionic and M3. Unfortunately, with an earlier rumour saying that the M3 has been postponed until next year, we will only have one announcement of a SoC built on TSMC’s cutting-edge design, but there must be a reason for this delay. While yield manufacturing of 3nm wafers is one among them, other factors are also at work.

Apple’s $24.1 billion profit on $94.8 billion in revenue for the second quarter of 2023 was driven by iPhone sales, which brought in $51.3 billion.

Remember that, despite the slowing economy, Apple’s iPhone sales surpassed the prior quarter’s revenue of $50.6 billion generated by the technology giant’s handset sector. The same success, however, could not be replicated by the Mac and iPad families, which only earned $7.2 billion and $6.7 billion, respectively.

Furthermore, all product categories’ revenue was down compared to the previous quarter, thus in addition to dealing with TSMC’s 3nm chip production issues, Apple faced another conundrum. Even if 3nm chip production stabilised and Apple launched the M3 on time, it would be meaningless if buyers did not purchase any next-generation Mac or iPad. The iPhone, on the other hand, would appeal to millions, particularly the ‘Pro’ models, which will feature the 3nm A17 Bionic.

Delaying the M3 is a wise decision because TSMC appears to be unable to meet the combined demand for it and the A17 Bionic, so the Taiwanese manufacturer now has more breathing room to focus more on the high-end iPhone chipset.

Apple plans to keep the momentum continuing for its Mac company with the release of a 15-inch MacBook Air, and while it is expected to use the same M2 as previous models, it will be a breath of fresh air as it introduces a new display size for an existing lineup.

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