Apple's iPhone 16 redesign spells doom for microchip business

We've heard plenty of rumours about the design of the iPhone 16, with the next generation of Apple's smartphone said to be gaining, among other things, a redesigned camera layout and larger screens. And if new rumours are to be believed, design changes could be having an impact on FaceID too.

According to new reports, Apple has ditched one of its suppliers, specifically the one responsible for sensors related to the FaceID camera. This is due to significant "design changes" for the iPhone 16. (In the market for new gear? Check out the best early Apple Amazon Prime Day deals.)

According to the telegraph, British microchip company Coherent's UK plant faces closure now that Apple has "pulled the plug on the lucrative deal". “Unfortunately the supply to the primary customer ceased at the end of Financial Year 2023,” Coherent said. “This places the ongoing viability of the business in doubt. A strategic review of the business is currently being undertaken with potential new technologies and/or sale of the business as options under consideration.”

The article claims that Apple's redesigned FaceID system could "feature a much smaller module buried under the screen." Indeed, a 'punch-hole' design has been rumoured for years, long before we ended with the Dynamic Island. 

From an Apple-designed battery to the introduction of Apple Intelligence, the future looks bright for the iPhone 16. For every rumour in one place, check out our roundup of iPhone 16 leaks and rumours.