Ming-Chi Kuo, an analyst at TF International Securities, provided key insights on Monday about Apple’s upcoming innovations, including the production timeline for the M5 chip series and the introduction of a variable aperture camera on the iPhone 18.
iPhone 18 to introduce variable aperture Camera
Kuo confirmed that the iPhone 18, expected to launch in 2026, will feature a variable aperture lens on its wide-camera module. This advanced system, allowing users to adjust aperture size mechanically, is set to significantly improve photography capabilities.
Contrary to earlier reports suggesting the feature would debut with the iPhone 17, Kuo reiterated that this camera upgrade will be exclusive to the iPhone 18.
According to Kuo’s findings, Sunny Optical will serve as the primary shutter supplier, with Luxshare providing secondary support for the variable aperture lens. Assembly of aperture blades will be facilitated by BE Semiconductor Industries (BESI), which will supply the critical equipment for this upgrade.
M5 Chip Series Production Timeline
Kuo outlined the production schedule for Apple’s next-generation M5 chips, designed to power future Macs and Apple Intelligence servers. These chips will leverage TSMC’s advanced N3P process node, promising better power efficiency and performance than their M4 predecessors.
- M5 Chip: Mass production is slated for the first half of 2025.
- M5 Pro and M5 Max: Production will follow in the second half of 2025.
- M5 Ultra: The high-end M5 Ultra chip is expected to enter production in 2026.
Kuo highlighted that the M5 Pro, M5 Max, and M5 Ultra chips will adopt a server-grade System on Integrated Chips (SoIC) design, featuring 2.5D packaging technology known as SoIC-mH. This design enhances thermal performance and production efficiency, making the chips well-suited for artificial intelligence (AI) applications.
Apple’s Upcoming Product Launches
Based on the production timeline, M5-powered Macs are likely to follow a rollout similar to the M4 series:
- MacBook Pro: Expected to feature M5 chips in October 2025.
- MacBook Air: Likely to receive the M5 update in the first half of 2026.
- Mac Studio and Mac Pro: Updates are anticipated later in 2026 or possibly in 2027.
The release timelines for iMac and Mac mini remain uncertain, as these models are not always refreshed annually.
Impact on BE Semiconductor (BESI) and Future Prospects
Kuo addressed the recent decline in BE Semiconductor’s stock during Q3 2024, attributing it to delays in 2H24 shipments, which have already been factored into market expectations.
Looking ahead, Kuo expressed optimism about BESI’s future, emphasizing its strategic position to benefit from the growing demand for high-end chip production and AI applications in 2025 and beyond.