Apple is expecting a surge in demand for its first set of AI-equipped smartphones, the iPhone 16 Series which will be unveiled on September 9.
It has reportedly told suppliers to prepare components and parts for around 88 million to 90 million smartphones – far more than last year’s initial component orders for around 80 million new iPhones, according to Nikkei Asia.
Some component makers have reported having received orders for even more than 90 million units, although they note that Apple usually places a higher number of orders initially and later adjusts it to market demand after the product goes on sale.
As ChannelNews recently reported, Apple is believed to be not only returning to China to produce its new generation of iPhone 16 devices, but will look to India too for its Pro models for the very first time.
The company has produced $14 billion (A$20.75 billion) worth of iPhones in India over the last fiscal year, accounting for as much as 14 per cent of its global output. Apple will now reportedly make its most expensive iPhone Pro and Pro Max models in India for the first time this year.
Foxconn Technology Group will reportedly begin assembling the new 16 Pro and Pro Max devices in India within weeks of their global launch next month. It has begun training thousands of workers at its factory in southern Tamil Nadu.
Foxconn has also begun a hiring blitz in China with around 50,000 extra workers added to its operations there over a two-week period recently. The company plans to invest 1 billion Yuan (approximately A$207.49 million) in Zhengzhou.
While Apple is betting big on the reception of its iPhone 16 devices, other manufacturers including Samsung, Google and Motorola have already debuted devices with AI capabilities before Apple, and so the Cupertino company will likely face stiff competition within this segment.
Apple has also faced mounting pressure from rivals in the Chinese market, which contributed some 17 per cent of its total revenue in the three months through March 30.
Still, with Apple Intelligence features set to roll out in select markets this year, Apple hopes that there will be a significant number of people not only switching over to Apple from Android, but also existing iPhone users finally prepared to trade in their older iPhone models for the latest one that offers capabilities that cannot be performed on older devices.
