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Apple targets 10% iPhone shipment growth in 2024 - Bloomberg

Published 07/10/2024, 04:14 PM
© Reuters

Investing.com - Apple Inc (NASDAQ:AAPL) is planning to ship at least 90 million units of its iPhone 16 in the latter half of 2024, banking on AI services to bolster demand for its new lineup following a challenging 2023.

The tech giant has communicated to its suppliers and partners that it's aiming for an approximately 10% growth in new iPhone shipments compared to their predecessors, after dispatching about 81 million iPhone 15s in the second half of 2023, according to a source.

Apple is optimistic that the integration of Apple Intelligence features with the iPhone 16 will help stimulate demand when the model debuts later this year, as per insiders who asked to remain anonymous due to the confidential nature of the projections.

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These targets imply that Apple anticipates a stronger 2024, despite competition from other AI-enhanced smartphones from rivals like Samsung Electronics (KS:005930) Co. and Xiaomi (OTC:XIACF) Corp (HK:1810).

However, Apple's comparison year, 2023, was particularly challenging, especially in China where Huawei Technologies Co.’s Mate 60 Pro with its advanced, locally produced 7-nanometer processor, gained favor among consumers. Wall Street analysts have projected a dip in iPhone revenue in the latter half of 2024.

Apple shares saw a boost of up to 1.8% to $232.74, reaching a record high after Bloomberg reported on the iPhone projections. The stock has risen 19% this year through Tuesday’s close.

In China, Apple also needs to find a partner since OpenAI’s ChatGPT isn't available in the country. Additionally, Apple is grappling with a broader challenge in its largest market outside the US, as more Chinese agencies and government-backed firms have instructed staff to refrain from using iPhones and foreign devices at work.

Apple's challenges in China extend beyond tepid demand. The company recently petitioned the Supreme People’s Court to remove references to its "dominant position" from a lower court's decision, underscoring the company's increasingly precarious position in the country.

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