Tech: Samsung starts manufacturing chip that will power Apple’s next handset

Manufacturing of the chip that will power next year’s iPhones and iPads has begun at Samsung’s plant in Austin.

Samsung has begun mass production of the A9 chip,  according to a report in Korea’s Electronic Times.

Apple is expected to update its current iPhone 6 and 6 plus with the next generation chips- and launch a new 4inch handset to replace the 5c, according to recent reports.

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Reports claim Apple may hold two iPhone launch events next year to release its iPhone 6S (a successor to its iPhone 6 pictured) in spring, and its iPhone 7 in September. The iPhone 6S may even go on sale at the same time as Apple’s Watch, according to some claims.

Production was said to have begun on Thursday at Samsung’s foundry in Austin, Texas, as part of an effort by Apple to move chip production back to the U.S.

It had been reported back in July that Samsung had received some orders for the chips, which the company effectively confirmed in October when the president of the company’s chip-making division said that profits would improve once it began supplying its latest-generation chips to Apple.

The South Korean company has built custom mobile chips for Apple since the launch of the first iPhone in 2007, but recently has seen its position reduced.

Reports say Apple may hold two iPhone launch events next year, to release its iPhone 6S in spring, and its iPhone 7 in September.

It is also believed to be developing a 4 inch ‘female friendly’ handset to replace the current 5c.

The claims were made by ‘sources in the supply chain’ to Jerry Miller from Stabley Times.

Until 2013, Apple released one handset each year around September time.

This included a new model one year, followed by a slightly modified ‘S-version’ the year after.

Last year, however, it used its September launch event to announce two new devices – its flagship iPhone 5S and the ‘cheaper’ iPhone 5C.

This was followed by the launch of its iPhone 6 and larger iPhone 6 Plus this year.

The new schedule is expected to stagger the releases of two devices in 2015 to capitalise on sales.

Apple could release the iPhone 6S to people who want to upgrade to a slightly cheaper model, before announcing its flagship iPhone 7 in the autumn.

The 6S may also be packaged together with the Apple Watch.

‘Our source says that Apple is hesitant about launching the iWatch in the spring of 2015 without a new iPhone to go along with it,’ explained Mr Miller.

‘[This] could give hesitant consumers an excuse to wait on buying both until the fall.’

The news comes as manufacturers revealed Apple has plans to kill off its iPhone 5C as early as next summer.

Launching a phone in spring would mean there was still the same number of handsets in the range once the iPhone 5C was discontinued.

The report, by Taiwan’s Industrial and Commercial times, did not reveal the reasons behind the plans, but Apple has previously been known to discontinue models as they are replaced by newer versions.

Sales of the 5C were also poor, compared to the company’s expectations, and in January, research firm CIRP reports the model accounted for just 27 per cent of iPhone sales at the end of 2013.

Manufacturers will begin winding down production of the handset from January, and are expected to pull the plug completely by the ‘middle of 2015.’

Apple launched its iPhone 5C alongside the high-end iPhone 5S in September 2013.

It is similar in size to the 5S, but doesn’t t have the Touch ID fingerprint scanner or the A7 processor seen in the more expensive model.

It has a plastic case, is available in five different colours, and at launch, prices started at $99 in the US, on a two-year contract, or $549 and £469 when bought outright.

The device was also the first Apple phone to be offered in the smaller 8GB model.

Apple also recently killed off its iPod Classic.

When Apple’s online store came back online following its iPhone 6 event in September, this later model was missing from the iPod lineup.

Apple did not make any formal announcement about ceasing the line at the time.

Apple boss Tim Cook later said the firm could have redesigned the gadget with different parts, but it wouldn’t have been cost-effective and would have involved a ‘massive’ task.

‘We couldn’t get the parts anymore, not anywhere on Earth,’ explained Mr Cook.

‘It wasn’t a matter of me swinging the axe, saying “What can I kill today?”

The Classic was the Apple’s first digital music player, and although the original debuted in 2001, there were six generations released up until 2007.

Apple is said to be forsaking its iPhone 5C to focus on production of its high-end iPhone 6 range.