iPhone 15 sequence and iPhone 16 sequence shipments might decline considerably as the corporate faces varied structural challenges, in keeping with TF Securities Worldwide analyst Ming-Chi Kuo. The iPhone maker is contending with the rise of two new paradigms associated to flagship smartphone design, whereas demand for its smartphones continues to say no in China, the analyst claims. Apple is predicted to unveil its purported iPhone 16 lineup because the successors to its iPhone 15 sequence of smartphones within the second half of 2024.
Kuo states in a Medium publish that his newest provide chain survey signifies the Cupertino agency has minimize its shipments of key upstream semiconductor parts to just about 200 million models — a 15 p.c drop in comparison with final 12 months. The analyst claims that shipments of Apple’s iPhone 15 sequence will drop by 10 p.c 12 months on 12 months (YoY) in H1 2024 whereas the iPhone 16 sequence will fall by as much as 15 p.c YoY in H2 2024.
In response to Kuo, the explanation behind Apple’s drop in shipments for the iPhone 15 and iPhone 16 is the varied structural modifications, together with the rising recognition of foldable telephones and the combination of generative AI (GenAI) options on high-end telephones. The corporate can be stated to be going through a decline in demand in China.
Whereas China continues to crack down on the iPhone in China, Apple’s rival Huawei is making a comeback within the nation. In the meantime, Kuo says that foldable telephones are rising in popularity amongst customers who buy flagship telephones. Weekly shipments of the iPhone in China have dropped by 30 to 40 p.c YoY in current weeks, in keeping with Kuo.
It’s price noting that the most recent information from Canalys reveals that Huawei returned to the highest 4 manufacturers in China in This fall 2023, however Apple shipments within the nation rose 6 p.c YoY as the corporate shipped 17.5 million models. Apple additionally had the best market share in China in This fall 2023, in keeping with information shared by Canalys. In the meantime, an IDC report revealed that iPhone shipments in China dropped 2 p.c in This fall 2023.
Apple has lowered its cargo forecast for the iPhone 15 in H1 2024, whereas Samsung has raised its cargo forecast by 5 p.c to 10 p.c as a result of GenAI features of the handset, in keeping with the analyst. Samsung launched new ‘Galaxy AI’ options on the Galaxy S24 sequence, whereas Apple is predicted to deliver some AI options with its iOS 18 replace that’s anticipated to reach later this 12 months.