Apple is reportedly hoping that its new artificial intelligence (AI) services will boost demand for the iPhone.
The company plans to ship at least 90 million iPhone 16s in the second half of this year, up about 10% from the 81 million iPhone 15s it shipped in the second half of 2023, Bloomberg reported on Wednesday (July 10), citing anonymous sources.
According to reports, the company expects that Apple Intelligence features, which will debut in the iPhone 16, will boost demand for its smartphones when the model launches later this year.
Apple did not immediately respond to PYMNTS’ request for comment.
After Bloomberg reported these figures, the company’s shares rose 1.8% to a record high, according to reports.
Bloomberg Intelligence analysts Anurag Rana and Andrew Girard reportedly said in a note on Wednesday that Apple’s shipment forecast is a “positive sign given the sluggish smartphone sales over the past two years.”
Market research firm International Data Corporation (IDC) said in May that global smartphone shipments are expected to grow 4% year-on-year in 2024, while Apple’s shipments are expected to grow 0.7%.
IDC attributes Apple’s slowing growth to increased competition in China.
“However, if Apple makes a strong push for its AI strategy for the iPhone and demonstrates clear use cases, it could accelerate Apple’s growth and revive iPhone demand, especially in China,” Nabila Popal, research director for IDC’s Worldwide Trackers team, said at the time.
On June 10, Apple unveiled a new suite of AI features called “Apple Intelligence,” which it said will revolutionize the iPhone, Mac and iPad experience while protecting users’ data.
“Apple Intelligence transforms what you can do with our products and what our products can do for you,” Apple CEO Tim Cook said during the new product announcement. “Our unique approach combines generative AI with user context to deliver intelligence that is truly useful. And then it gives you access to that information in a completely private and secure way, to help you do the things that matter most to you.”
The entire smartphone industry is anticipating big changes due to advances in AI, PYMNTS reported in May. The technology is expected to bring a ton of advanced features to devices and change how users interact with them.
