Apple's New iPad Pro: M4 Chip Targets AI, Competes with Giants

Key Takeaway

• Apple launches iPad Pro with M4 chip, boasting advanced AI capabilities and built on 3nm technology, enhancing power efficiency.
• The strategic release aims to compete in the AI space against giants like Microsoft-backed OpenAI and Google, amidst declining iPhone sales.
• New iPad enhancements include thinner, brighter screens and a redesigned Pencil stylus, highlighting Apple's focus on AI and processor innovation.

AI Chip Innovation

Apple has introduced a new iPad Pro featuring the M4 chip, described as "an outrageously powerful chip for AI," marking a significant step in the company's focus on artificial intelligence. This development comes shortly after the release of the M3 chip with new Macs in October, highlighting the rapid pace at which Apple is advancing its processor technology. Tim Millet, Apple’s vice-president of platform architecture, emphasized the M4 chip's combination of a central processing unit, graphics processor, and dedicated AI capabilities, known as the neural engine, as a substantial advancement over previous models. The M4 chip is built on the second-generation 3nm node technology, promising enhanced power efficiency and increased memory bandwidth, crucial for AI applications.

Market Dynamics and Competition

The unveiling of the M4 chip in the iPad Pro rather than a laptop is a strategic move by Apple, possibly aimed at getting its latest, more power-efficient chips into the hands of app developers ahead of its annual software developer conference. This strategy comes as Apple faces increasing pressure to innovate in AI to compete with rivals like Microsoft-backed OpenAI and Google, especially as iPhone sales have seen a decline. The tech industry is witnessing a surge in demand for powerful processors to build large language models, with companies like Nvidia launching new generations of AI processors to maintain their market dominance. Apple's latest chip innovation gives it an opportunity to bring AI features that typically run in the cloud directly onto devices, enhancing app performance and privacy.

Product Enhancements and Strategic Focus

The new iPad Pro models boast thinner and brighter screens, requiring more sophisticated processors. These enhancements, along with the introduction of a redesigned Pencil stylus and a more affordable version of the larger 13-inch iPad model, aim to reinvigorate Apple's tablet lineup. The M4 chip's introduction across Apple's product range is anticipated to pave the way for more advanced AI capabilities. Apple plans to discuss its AI plans further at its Worldwide Developers Conference on June 10. The company's focus on custom silicon enables breakthrough products, as stated by Johny Srouji, Apple’s senior vice-president of hardware technologies. This strategic emphasis on AI and processor innovation reflects Apple's commitment to maintaining its competitive edge in the tech industry.

Street Views

• Ben Bajarin, Creative Strategies (Neutral on Apple):

  "The flexibility of Apple silicon architecture remains one of their biggest technical advantages over competitors... starting to be more intentional in calling out its [chips’] role in AI."

Management Quotes

• Tim Millet, Vice-President of Platform Architecture at Apple:

  "M4 an outrageously powerful chip for AI."

• Johny Srouji, Senior Vice-President of Hardware Technologies at Apple:

  "The new iPad Pro with M4 is a great example of how building best-in-class custom silicon enables breakthrough products."