Apple Aims for 10% Growth in iPhone 16 Shipments in 2024

Apple Inc. is setting its sights on a significant increase in iPhone 16 shipments for the latter half of this year as it targets at least 90 million units, according to sources familiar with the matter.

This represents a 10% growth compared to the 81 million iPhone 15 devices shipped in the same period last year, reflecting the company’s confidence in the demand for its new lineup powered by advanced AI services.

Despite a challenging 2023, particularly in the Chinese market, Apple is optimistic that the integration of new Apple Intelligence features will drive consumer interest and boost sales.

The company’s projections suggest a potential rebound in 2024, even as it faces stiff competition from AI-enhanced smartphones by rivals such as Samsung Electronics Co. and Xiaomi Corp.

The upbeat forecast comes after a tough year where Apple struggled to maintain its foothold in China, a market disrupted by Huawei Technologies Co.’s Mate 60 Pro, which gained popularity due to its advanced, locally-produced 7-nanometer processor.

However, recent trends indicate a resurgence in demand for Apple’s iconic handsets, aided by a series of strategic discounts and promotional activities, especially around major shopping events like the “618” festival in June.

Apple’s projections have already had a positive impact on its stock, which surged as much as 1.8% to a record high of $232.74 following the news.

The stock has seen a 19% increase this year to date, underscoring investor confidence in the company’s growth strategy.

In the broader smartphone market, overall shipments declined by 3.2% last year, according to IDC. Yet, Apple managed to buck the trend with a 3.7% increase in sales.

This resilience, coupled with the anticipated AI enhancements in the iPhone 16, is expected to further strengthen Apple’s market position.

The integration of AI is a critical component of Apple’s strategy to differentiate its products and enhance user experience.

The company has been playing catch-up in the AI domain, recently announcing a partnership with OpenAI to incorporate AI features into its devices.

However, challenges remain, particularly in navigating stringent AI policies in China, where the availability of services like ChatGPT is restricted.

Beyond AI, Apple faces broader challenges in its largest market outside the US.

Chinese government agencies and state-backed firms have increasingly mandated the use of local devices over foreign alternatives, reflecting Beijing’s push to reduce dependence on imported technology amid escalating US-China tech tensions.

In addition to market dynamics, Apple is contending with legal and regulatory hurdles in China.

The company recently petitioned the Supreme People’s Court to remove references to its “dominant position” in a lower court decision related to app revenue disputes, highlighting the complex regulatory environment it operates in.

Despite these challenges, Apple remains committed to its growth targets and innovation-led strategy. By leveraging AI and continuing to enhance its product offerings, the company aims to sustain its competitive edge and achieve its ambitious shipment goals for the iPhone 16.