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Apple increases iPhone 16 production as it expects huge demand for upcoming smartphone- Firstpost

Apple increases iPhone 16 production as it expects huge demand for upcoming smartphone- Firstpost

Earlier this month, reports emerged that Apple had increased its chip orders from TSMC, suggesting expected iPhone sales of between 90 million and 100 million units. In comparison, the iPhone 15 and iPhone 15 Pro order volume was between 80 million and 90 million units starting in September 2023. Image source: Reuters

Apple is gearing up for a promising end to 2024, expecting demand for the upcoming iPhone 16 to increase. The company hopes iPhone 16 shipments will be about 10 percent higher than in 2023.

Much of this optimism is due to Apple Intelligence’s presentation at the Worldwide Developers Conference (WWDC), which could significantly boost smartphone sales.

Apple has already informed its supply chain partners of its ambitious goal of a 10 percent increase in shipments compared to the second half of 2023. Last year, around 81 million iPhone 15 units were shipped, and the company plans to surpass that number this year.

This optimistic outlook is not just wishful thinking on Apple’s part; it is shared by others in the industry.

Earlier this month, reports emerged that Apple had increased its chip orders from TSMC, suggesting expected iPhone sales of between 90 million and 100 million units. By comparison, the iPhone 15 and iPhone 15 Pro order volume was between 80 million and 90 million units starting in September 2023.

Analysts are also talking about a huge update cycle, calling it a “Super Cycle” for the iPhone 16. Much of this is being driven by new Apple Intelligence features, which are likely to attract a lot of interest from consumers. Additionally, the growing range of AI services available to users will likely encourage more people to upgrade.

But it’s not just about cool new features. The smartphone market in China is starting to recover, which is great news for Apple. In May 2024, Apple’s sales in the region were up 44% from April and 40% year-over-year.

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

Things were looking pretty bleak at the start of the year. In the first quarter of 2024, Apple’s shipments fell 9.6% year-over-year, while Chinese competitors and Samsung saw growth. Going back even further to November 2023, there were concerns that Apple’s shipments in China had fallen more than expected, a trend that was expected to continue throughout 2024.

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

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