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.)

iPhone 16 Pro concept

A fan-made concept showing an iPhone with a punch-hole camera (Image credit: @MajinBuOfficial via X)

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.”

An Apple marketing image of the iPhone 14 Pro next to a photo of the Dynamic Island in direct sunlight

Dynamic Island was introduced with the iPhone 14 Pro (Image credit: Apple/Jon Prosser/Future)

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.

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Daniel John
Design Editor

Daniel John is Design Editor at Creative Bloq. He reports on the worlds of design, branding and lifestyle tech, and has covered several industry events including Milan Design Week, OFFF Barcelona and Adobe Max in Los Angeles. He has interviewed leaders and designers at brands including Apple, Microsoft and Adobe. Daniel's debut book of short stories and poems was published in 2018, and his comedy newsletter is a Substack Bestseller.