Apple orders over 10% more iPhones than last year on AI sales bet- Nikkei

Investing.com--Apple was seen ordering components for a much higher number of iPhones than last year, the Nikkei reported on Thursday, as the technology giant prepared for an artificial intelligence-driven boost to sales.

Apple Inc (NASDAQ:AAPL) ordered components and parts for between 88 million to 90 million of its flagship device, compared to initial component orders of about 80 million iPhones, the Nikkei report showed. Some suppliers also flagged orders for more than 90 million devices. 

The report comes just days before the reveal of Apple’s iPhone 16 range, which is expected to be launched with a host of generative AI features amid growing interest in the industry. 

The increased orders reflect a slew of analyst forecasts that AI will help power a new round of growth in iPhone sales, which have been steadily declining over the past year. The Cupertino-based tech giant faced increasing challenges in its key markets, especially China, where rival offerings from Huawei ate into Apple’s sales.

Worldwide, the company also faced increased competition from rival  Samsung Electronics (LON:0593xq) Co Ltd  (KS:005930), which beat Apple to the punch by incorporating a slew of AI features into its flagship Galaxy devices. 

Apple suppliers are still cautious over the iPhone’s prospects and anticipate “flattish” iPhone shipments for 2024, the Nikkei report said. The firm is also grappling with increased trade tensions between the U.S. and China, which saw Beijing block government officials from using Apple products for official purposes.