Apple Targets 90 Million iPhone 16 Shipments with AI Features

Apple has set an ambitious goal for the second half of 2024, aiming to ship at least 90 million units of its upcoming iPhone 16 banking on the smartphone’s new AI features, Bloomberg is reporting.

This target represents a significant increase from the 81 million iPhone 15 devices shipped during the same period last year. The tech giant hopes the AI features will spur demand for its latest iPhone lineup, following a challenging 2023.

Sources familiar with Apple’s strategy indicate that the company is confident that the introduction of Apple Intelligence features in the iPhone 16 will significantly enhance consumer interest.

The company’s projections are also bolstered by an easier year-on-year comparison, considering the difficulties faced in the latter half of 2023. During that period, Apple’s performance in China was particularly affected by the success of Huawei’s Mate 60 Pro, which featured a cutting-edge, domestically produced 7-nanometer processor.

The iPhone’s performance in China showed signs of recovery beginning in April 2024. This rebound was partly fueled by significant discounts ahead of the “618” nationwide shopping event on June 18.

A key challenge for Apple moving forward, however, will be navigating China’s stringent AI regulations. Nicole Peng, a senior vice president at Canalys, pointed out that these restrictions could hinder Apple’s initial attempts to incorporate AI into its products in China.

Apple’s challenges in China extend beyond AI integration. Last year, many Chinese agencies and government-backed firms instructed their staff to stop using iPhones and other foreign devices at work.

Adding to Apple’s woes, the company has recently petitioned the Supreme People’s Court in China to remove references to its “dominant position” from a lower court’s decision.

The ruling in question concluded a dispute over the revenue cut Apple takes from most app developers.