The presentation of the next generation of Apple smartphones is scheduled for September 9; their main feature will be support for a set of Apple Intelligence technologies that are associated with artificial intelligence. According to unofficial data, a certain bet is placed on buyer interest in these solutions, which is why Apple orders approximately 10% more smartphones for production than last year.
Image Source: Apple
The Japanese publication Nikkei Asian Review through its channels found out that component suppliers were ordered to prepare components for the production of 88 to 90 million new generation Apple smartphones by the end of the year. Last year, this plan provided for the production of about 80 million iPhones of the 15th family. Thus, this year the company expects an increase in demand of approximately 10%. Some component suppliers even admitted that they had received orders for more than 90 million smartphones, but some overestimation of orders is generally typical for Apple at the initial stage, and later the demand is adjusted downward.
In the Chinese market, which in the first quarter of this year formed 17% of the company’s revenue, Apple is not doing well. Firstly, its position here is actively being squeezed by local smartphone manufacturers. Secondly, the political confrontation between China and the United States imposes its own difficulties on doing business in the region. Chinese officials have repeatedly expressed concerns about the information security of the Apple ecosystem, and employees of government agencies and companies were allegedly even prohibited from using the iPhone for official purposes. Some suppliers fear that these problems in the Chinese market will lead to lower production volumes of Apple smartphones in the coming months. One way or another, last year formed a high base for comparison, and therefore, by the end of 2024, overall iPhone sales volumes may remain at the same level.
Analysts at Haitong Securities predict that Apple will be able to deliver 88 million new-generation iPhones to the market by the end of the year, but they are not ready to recognize this as the beginning of a new “supercycle”. Apple Intelligence functions, in their opinion, in their current form will not provide a significant breakthrough this year. The maturation of the AI ecosystem over the next year will set the stage for greater growth.