Upon introducing Apple Intelligence at the Worldwide Developers Conference (WWDC), the tech giant is gearing up for a strong close to 2024. Apple (AAPL) has alerted its supply chain partners to expect a 10% surge in iPhone 16 sales compared to those in 2023. A report published earlier this month detailed Apple’s ambitious goal to produce nearly 100 million iPhone 16 handsets. The smartphone behemoth has also engaged chipmaker TSMC to manufacture a sufficient number of A18 chips using its second-generation 3nm process node (N3E) to match their production goals later this year.
Apple hopes to redeem itself from its 2023 plummet in iPhone sales through the launch of Apple’s AI initiative. Aside from Apple’s optimism surrounding the integration of AI in its iPhone 16 handset series, the industry at large also seems to mirror the same enthusiasm. Analysts have coined Apple’s massive upgrade cycle as the “Supercycle” for the iPhone 16. The AI integration is expected to intrigue Apple’s fallen consumer base and restore its brand loyalty. Additionally, the growing array of AI services available to users will likely encourage more people to upgrade.
In light of Apple’s entry into the AI-powered smartphone race, its foothold in the Chinese market shows signs of a steady recovery. In May 2024, Apple’s sales in the region jumped by 44% compared to April and were up 40% year-on-year. Apple’s changing tide, bolstered by the launch of the iPhone 16 and Apple Intelligence, reassures investors and consumers of a premium product with significant upgrades.
