Apple Aims for 90 Million iPhone 16 Shipments, AI Features Key

Apple Aims for 90 Million iPhone 16 Shipments, AI Features KeyFollowing a challenging 2023, Apple reportedly aims to ship at least 90 million iPhone 16 units in the second half of the year, hoping to boost demand for the new lineup by deeply integrating artificial intelligence (AI) services.Sources indicate that Apple has notified its suppliers and partners about the iPhone 16 shipment target, representing a roughly 10% increase over the previous iPhone 15 generation

Apple Aims for 90 Million iPhone 16 Shipments, AI Features Key

Following a challenging 2023, Apple reportedly aims to ship at least 90 million iPhone 16 units in the second half of the year, hoping to boost demand for the new lineup by deeply integrating artificial intelligence (AI) services.

Sources indicate that Apple has notified its suppliers and partners about the iPhone 16 shipment target, representing a roughly 10% increase over the previous iPhone 15 generation. Apple shipped approximately 81 million iPhone 15 units in the second half of 2023, and the new target reflects their confidence in the iPhone 16's market performance.

Apple insiders have revealed that the company has high expectations for the AI features integrated into the iPhone 16, believing they will significantly drive market demand upon the product's launch later this year. This potentially implies Apple's intention to deeply integrate AI technology into its hardware products, aiming to gain an edge in the fiercely competitive smartphone market.

It's worth noting that Apple's target setting comes against the backdrop of a lackluster performance in the second half of 2023. Particularly in the Chinese market, Huawei's Mate 60 Pro, equipped with an advanced domestic 7nm processor, has gained consumer favor, posing significant competitive pressure on Apple.

Despite the challenges, Apple continues to demonstrate strong growth momentum. Following media reports about the iPhone shipment expectations, Apple's stock price surged by 1.8%, reaching a new high of $232.74 per share, marking a 19% increase year-to-date. Bloomberg Intelligence analysts Anurag Rana and Andrew Girard described this optimistic forecast as a ray of hope amidst a sluggish smartphone sales environment. The news also boosted the stock prices of Apple supply chain partners such as Skyworks Solutions and Qorvo.

Market research firm IDC data reveals that while global smartphone shipments declined by 3.2% last year, Apple bucked the trend, achieving a 3.7% growth. Independent research from government data and authoritative market tracking agencies like Counterpoint Research indicates that iPhone sales in the Chinese market were sluggish at the beginning of 2024 but experienced a significant rebound starting in April, driven by factors including a series of discount campaigns leading up to "JD 618."

In the AI domain, Apple, while initially lagging behind industry giants like OpenAI and Google, has been catching up rapidly. The company has not only introduced Apple AI but also announced a collaboration with OpenAI in June.

Although Apple enjoys a strong global presence, it still needs to actively seek partners in the Chinese market. With increasingly fierce competition in the Chinese market, Apple must continue to strive to maintain its leading position in the region.

In summary, Apple's setting of a 90 million iPhone 16 shipment target, coupled with the deep integration of AI features, signifies the company's confidence in future growth. However, they face challenges from competitors like Huawei and the intensifying competitive pressure in the Chinese market. How Apple integrates AI technology into its products and adapts to market changes will be keenly observed going forward.