Apple Inc. has reportedly boosted its orders for new iPhones, indicating a strong belief in the success of its upcoming AI-equipped models. According to sources familiar with the matter, the tech giant has instructed suppliers to prepare components for approximately 88 million to 90 million units, surpassing last year’s initial orders for the iPhone 15 series. While some suppliers have received orders for over 90 million units, it is worth noting that Apple often adjusts its orders post-launch.
Despite the increased orders, Apple faces tough competition in China, which accounted for 17% of its revenue in the first quarter. Huawei Technologies has recently surpassed Apple in the Chinese market, and the company is also navigating geopolitical tensions between the U.S. and China, with safety concerns about iPhones raised by the Chinese Ministry of Foreign Affairs.
Analyst Jeff Pu from Haitong Securities predicts around 88 million new iPhone shipments this year but does not expect a “supercycle.” Pu believes that 2025 could be a more significant year as the AI ecosystem matures. Apple has not yet responded to requests for comment.
The heightened orders for AI-enabled iPhones come as part of a series of strategic moves by Apple. Analyst Daniel Ives of Wedbush highlighted that the upcoming iPhone launch could trigger the company’s largest upgrade cycle in history. Ives emphasized the potential growth phase driven by the integration of AI technology into the new models, stating that an estimated 25% of the world will ultimately access AI through an iPhone.
Furthermore, IDC’s market update suggests a 5.8% rise in global smartphone shipments by 2024, which is expected to benefit Apple, especially with the introduction of generative AI capabilities in its new models. However, Apple is also facing internal restructuring efforts, as reports emerged of about 100 layoffs in its services division. Additionally, renowned analyst Ming-Chi Kuo noted that the iPhone 17 Pro Max, set for a 2025 release, will feature enhanced AI capabilities, potentially becoming a major selling point.