Apple ramps up iPhone 16 production as it expects massive demand for upcoming smartphone

Apple is gearing up for a promising end to 2024, expecting a surge in demand for the upcoming iPhone 16. The company is hopeful that shipments of the iPhone 16 will be about 10 per cent higher than those in 2023.

This optimism is largely due to the introduction of Apple Intelligence at the Worldwide Developers Conference (WWDC), which has the potential to significantly boost smartphone sales.

Apple has already informed its supply chain partners about its ambitious goal, aiming for a 10 per cent increase in shipments compared to the latter half of 2023. Last year, they shipped around 81 million iPhone 15 units, and they’re planning to top that figure this year.

This upbeat outlook isn’t just Apple’s wishful thinking; it’s echoed by others in the industry.

Earlier this month, there were reports that Apple had increased its chip orders from TSMC, hinting at expected iPhone sales between 90 million and 100 million units. For comparison, the order volume for the iPhone 15 and iPhone 15 Pro was around 80 million to 90 million units starting in September 2023.

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Analysts are also talking about a massive upgrade cycle, calling it a “Supercycle,” for the iPhone 16. A lot of this is driven by the new Apple Intelligence features, which are expected to attract a lot of consumer interest. Plus, the growing array of AI services available to users is likely to encourage more people to upgrade.

It’s not just about the cool new features, though. The smartphone market in China is starting to recover, which is great news for Apple. In May 2024, Apple’s sales in the region jumped by 44 per cent compared to April, and were up 40 per cent year-on-year.

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This is a significant improvement, considering that back in March, Apple was struggling in China, which led to a reduction in expected shipments.

Earlier in the year, things looked pretty bleak. In the first quarter of 2024, Apple’s shipments dropped by 9.6 per cent year-on-year, while Chinese competitors and Samsung were seeing growth. Going even further back to November 2023, there was concern that Apple’s shipments in China were down more than expected, and the trend was expected to continue throughout 2024.

But now, just half a year later, the outlook has completely turned around. Apple’s fortunes have brightened significantly, and the company is looking forward to a strong performance in the second half of 2024. With the new iPhone 16 and the buzz around Apple Intelligence, it seems like things are finally looking up for Apple.