Why is Apple confident of achieving sales of at least 90 million iPhone 16s?

According to Bloomberg, Apple is expected to ship at least 90 million iPhone 16 units with the expectation of boosting sales of the new generation iPhone, similar to the 10% sales growth compared to the iPhone 15 generation.

Apple hopes GenAI can be a factor in boosting sales of the new generation of iPhones. (Source: Wired)

Previously, CEO Tim Cook affirmed that generative AI is a “new chapter” in the iPhone maker's innovation process.

Apple's biggest source of revenue has been on a downward trend lately, so a heavily marketed technology could be the catalyst to stop the decline.

Ambition faces many challenges

First of all, declining iPhone sales are not a short-term problem for Apple. The downward trajectory has been going on for a while, and it will take something substantial to reverse the trend.

In its last full fiscal year, iPhone sales fell to $200 billion from $205 billion the year before. It was a similar story in the first six months of this fiscal year, with revenue falling to just under $116 billion.

While the overall decline is small, in some markets, such as China, Apple has faced severe declines in iPhone sales in recent months, as much as 19% in the first three months of 2024 - according to data from research firm Counterpoint.

Meanwhile, consumer trends are also changing in the smartphone sector. Users are now less likely to upgrade their phones as soon as a new device is released.

Fierce competition from rivals

While Apple laid out its vision for generative AI at its Worldwide Developers Conference (WWDC) in June, that was months behind rivals like Google and Samsung.

Google is busy rolling out its Gemini AI model to Pixel devices this year, while South Korea's Samsung has been rolling out Galaxy AI on its S24 series of smartphones since January.

Not only that, Samsung is also bringing AI to older smartphones, like the S23 and Z Fold 5, which means users can try out cool new AI features without spending money on a new device.

The question for Apple, however, is whether consumers care enough about AI to pay for the upgrade. While the company has partnered with OpenAI, the startup behind ChatGPT, to bring AI to devices in its ecosystem, it’s unclear whether consumers will be willing to buy a smartphone with software that’s only useful for basic tasks like writing emails and editing photos.

Source: https://baoquocte.vn/vi-sao-apple-tu-tin-dat-doanh-so-it-nhat-90-trieu-chiec-iphone-16-278661.html