AI services boost demand, iPhone 16 shipments in the second half of the year will increase by 10%, Apple hits a new high intraday

On July 11th, Eastern Time, media cited sources familiar with the matter as saying that Apple has informed suppliers and partners that the company plans to ship at least 90 million units of the iPhone 16 in the second half of this year, an expected 10% increase from its predecessor, the iPhone 15, which had a shipment volume of around 81 million units in the second half of 2023.

Furthermore, sources also indicated that Apple is increasingly confident that some "Apple Intelligence" features (AI features) added to the iPhone 16 will help boost demand.

Following the announcement of this news, Apple's stock price briefly rose by 1.8% to $232.74, hitting a new intraday high. As of the close of trading on Tuesday, the stock has risen by 19% year-to-date.

However, Wall Street analysts predict that Apple's iPhone revenue will decline in the second half of 2024 as the company faces competition from AI-enhanced smartphones from competitors like Samsung and Xiaomi, and Huawei's Mate 60 Pro, which has gained consumer favor with its advanced domestic 7-nanometer processor.

Looking back at the second half of 2023, Apple performed poorly in the Chinese market. However, according to data from institutions such as Counterpoint Research, thanks to a series of discount activities on the eve of the "618" shopping festival, demand for iPhones in the Chinese market has significantly rebounded starting from April, despite a slow start in the first half of 2024.

Apple entered the AI field relatively late but announced the release of Apple Intelligence in June and a partnership with OpenAI