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How Apple sees these features in iPhone 16 models driving sales up 10%

Apple is aiming to ship at least 90 million iPhone 16 devices in the latter half of 2024, a 10% increase from the previous year, as the company bets on new artificial intelligence features to drive demand, according to a report from Bloomberg.

The iPhone -maker has informed suppliers and partners of its ambitious target, which comes after shipping approximately 81 million iPhone 15 units in the second half of 2023, Bloomberg reported, citing a person familiar with the matter.

Apple's confidence stems from the anticipated inclusion of " Apple Intelligence " features in the iPhone 16 lineup. These AI-driven capabilities are expected to be a key selling point when the new models launch later this year.

The projected growth suggests Apple foresees a stronger 2024, despite facing competition from AI-enhanced smartphones produced by rivals such as Samsung and Google. However, the company still needs to navigate challenges, particularly in China, where it faces stringent AI regulations and increased competition from local manufacturers.

Apple Intelligence may help boost iPhone sales in China as well
Bloomberg noted that iPhone sales in China, Apple's largest market outside the US, had a slow start in 2024 but began to rebound strongly in April, partly due to promotional discounts.

The new shipment targets also come after a challenging 2023, where Apple faced headwinds in China from Huawei 's Mate 60 Pro, which gained popularity with its advanced, locally-made processor.

Apple's move to integrate AI features across its iPhone lineup marks a significant shift. While only the iPhone 15 Pro and Pro Max currently support Apple Intelligence, all iPhone 16 models are expected to include these capabilities, potentially driving upgrades among existing users.

However, Apple still needs to address several uncertainties, including finding a Chinese AI partner to comply with local regulations and navigating the implementation of AI features in markets like the European Union.

Despite these challenges, Apple's stock reached a new all-time high following the report, reflecting investor optimism about the company's AI-driven growth strategy for 2024.