Apple vows to empower iPhone 16 with AI! Plans to increase shipments by 10% in the second half of 2024, breaking the gloom of 2023

According to the Zhītōng Finance app, Apple (AAPL.US) is planning to launch at least 90 million iPhone 16 devices in the second half of 2024. The company hopes to stimulate demand for the new product line with artificial intelligence services, aiming for a significant rebound after experiencing weak demand for the iPhone in 2023. Internal sources revealed that Apple has informed suppliers and partners that the shipment target for the new iPhone is expected to increase by about 10% compared to the previous generation, with the shipment volume of the iPhone 15 in the second half of 2023 reaching 81 million units. Apple's confidence in the iPhone 16 partly stems from its new Apple Intelligence features, which the company believes will help boost demand when the product is launched.

This target indicates Apple's expectation of a stronger performance in 2024, despite facing competition from AI-enhanced smartphones from rivals such as Samsung Electronics and Xiaomi. However, Apple's comparison base is relatively low, as in the second half of 2023, especially in the Chinese market, Huawei's Mate 60 Pro gained consumer favor with its advanced 7-nanometer processor, leading to Apple's underperformance. Wall Street analysts predict that iPhone revenue may decline in the second half of 2024.

Reports on iPhone forecasts have temporarily boosted Apple's stock price by 1.88% to a historical high of $232.98. As of the close of trading on Wednesday, Apple's stock price has risen by 21.3% year-to-date.

The trend in the above chart reflects the market's growing confidence in Apple's future profitability, especially in the investment and development potential of artificial intelligence (AI). With the continuous development and application of AI technology, the market may expect Apple to benefit from it, thus being willing to pay a higher price for its stock.

Bloomberg Intelligence analysts Anurag Rana and Andrew Girard pointed out in their report on Wednesday that this optimistic forecast is a positive signal for the smartphone market, which has experienced sluggish sales over the past two years. In addition, this news has also boosted the stock prices of Apple's core suppliers, such as Skyworks Solutions (SWKS.US) and Qorvo (QRVO.US).

According to data from the International Data Corporation (IDC), global smartphone shipments declined by 3.2% last year, while Apple's shipments grew against the trend by 3.7%. However, independent research in the Chinese market shows that the initial performance of the iPhone was relatively slow, but since April, there has been a strong rebound in demand, especially in "Ahead of the 618 National Shopping Day, a series of discounts were launched.

In the field of AI, Apple has been striving to catch up with companies like OpenAI and Google. In June, Apple announced a partnership with OpenAI and launched Apple Intelligence. However, in China, Apple still needs to find partners as OpenAI's ChatGPT has not been launched in the Chinese market.

Nicole Peng, Senior Vice President of Canalys, pointed out a major issue that Apple faces in China, which is how to comply with local artificial intelligence policies. She highlighted that China's strict regulations on artificial intelligence may hinder Apple's initial attempts to integrate AI technology into its products