According to the Smart Phone app, Apple (AAPL.US) is planning to launch at least 90 million iPhone 16 devices in the second half of 2024, hoping to stimulate demand for the new product line with artificial intelligence services, in order to achieve a major rebound after experiencing a weak demand for iPhone in 2023. According to insiders, Apple has told suppliers and partners that the shipment target for the new iPhone is about 10% higher than the previous generation, and the shipment volume of iPhone 15 in the second half of 2023 is 81 million. Apple's confidence in iPhone 16 comes in part from its new Apple Intelligence functionality, which the company believes will help boost demand for its products when they hit the market.
This target shows that Apple expects a stronger performance in 2024, despite having to compete against AI-enhanced smartphones from competitors such as Samsung Electronics and Xiaomi. However, Apple faces a comparatively low benchmark because Huawei's Mate 60 Pro won consumer favor with its advanced 7-nanometer processor, especially in the Chinese market in the second half of 2023, leading to poor performance by Apple. Wall Street analysts expect iPhone revenue to decline in the second half of 2024.
It is reported that the prediction of iPhone has pushed Apple's stock price up 1.88%, reaching a historical high of $232.98. As of Wednesday's close, Apple's stock price had risen 21.3% this year.
The above trend reflects the market's growing confidence in Apple's future profitability, particularly in the investment and development potential of artificial intelligence (AI). As AI technology continues to evolve and be applied, the market may anticipate that Apple will benefit from it and be willing to pay higher prices for its stock.
Bloomberg Intelligence analysts Anurag Rana and Andrew Girard pointed out in their report on Wednesday that this optimistic forecast is a positive signal for the sales of smartphones in the past two years. In addition, this news also boosted the stock prices of Apple's core suppliers, such as Skyworks Solutions (SWKS.US) and Qorvo (QRVO.US).
According to data from the International Data Corporation (IDC), the global smartphone shipments fell by 3.2% last year, while Apple's shipments rose against the trend by 3.7%. However, independent research in the Chinese market shows that the start of iPhone was relatively slow, but since April, demand has rebounded strongly, especially after a series of discounts launched just before the "618" national shopping event.
In the AI field, Apple has been trying to catch up with companies such as OpenAI and Google. In June, Apple announced a partnership with OpenAI and launched Apple Intelligence. However, in China, Apple still needs to find partners because OpenAI's ChatGPT has not yet been launched in the Chinese market.
Nicole Peng, senior vice president of Canalys, raised a major issue facing Apple in China, which is how to comply with local AI policies. She pointed out that China's strict restrictions on AI may hinder Apple's initial attempts to integrate AI technology into its products.