The U1 chip is also used with the Apple Watch Series 6 and later, the HomePod mini and the second-generation AirPods Pro carrying case. The chip is used for features that require the Find My app, AirDrop, and more.
According to Kuo, the new U1 chip will be built using the 7nm process node instead of the 16nm process node used on the previous version of the component. The new variant of the chip will have improved performance and lower energy consumption when used for "nearby interactions." The analyst adds that the iPhone 16 series will include Wi-Fi 7 which will help Apple's goal of integrating different products over the same local network as users get a better ecosystem experience. Wi-Fi 7 is expected to deliver faster transfer speeds, support an increased number of connections, and feature low latency.

Analyst Ming-Chi Kuo tweets about Vision Pro integration with other Apple devices
Kuo adds that one of the important things that will determine the success of the Vision Pro will be how well the headset integrates with other Apple devices. At WWDC earlier this month, Apple unveiled its spatial computer which it will sell early next year for a price of $3,499. A cheaper version of the device is reportedly being developed by Apple with the possibility of a release toward the end of 2025. Kuo originally forecast that Apple would ship 800,000 to 1.2 million Vision Pro units next year although he has since reduced that estimate to less than 500,000 units.At least in its early days, sales of Apple's spatial computers might depend on their integration with the iPhone and to a lesser degree, the Apple Watch. Apple seems to realize this and improving the U1 chip this year and moving to Wi-Fi 7 next year will help Apple integrate what is still its most important device with the one that could eventually morph into its next big thing.
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