Apple Inc. (AAPL  ) is said to be planning to integrate its A18 chip into its upcoming entry-level iPhones and iPads in order to make them capable of running Apple Intelligence, the company's suite of AI features.

What Happened: According to known tipster Ice Universe, Cupertino is keen on extending its Apple Intelligence features to its entry-level devices. This news follows the speculations surrounding the specifications of the upcoming fourth-generation iPhone SE.

The tipster disclosed that the new iPhone SE would likely be powered by the A18 chip, the same chip anticipated to power the entire iPhone 16 lineup.

Traditionally, the iPhone SE has always utilized the chip from the latest iPhones. However, this year saw the introduction of Apple Intelligence, and only iPhones equipped with the A17 Pro chip received the new AI features with iOS 18.

This could explain why all new iPhone 16 models will receive the A18 chip, to ensure access to the latest features.

Apple's decision to use the A18 chip in the new iPhone SE suggests that the company is using AI features as a selling point. Rumors also suggest that the new HomePod with a touchscreen might be powered by the A18 chip, indicating that Apple may update the entry-level iPad and iPad mini with its latest chip.

Why It Matters: Apple's AI-powered features, collectively known as Apple Intelligence, were first unveiled at the Worldwide Developers Conference in June.

Apple's top executives clarified that the decision to limit Apple Intelligence features to the latest iPhone models was not a tactic to boost iPhone sales. If Apple does bring its AI feature set to entry-level iPhones, it would be the first time since the iPhone 14 that all the models run on the same chipset, instead of the entry-level models running a generation behind.