Apple orders over 10% more iPhones than last year on AI sales bet – Nikkei By Investing.com

Investing.com–Apple was seen ordering components for a much larger number of iPhones than last year, it reported on Thursday, as the tech giant braced for an artificial intelligence-driven sales surge.

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

The report comes just days ahead of the unveiling of Apple’s iPhone 16 lineup, which is expected to launch with a host of generative AI features amid growing interest in the industry.

The increase in orders reflects many analysts’ predictions that AI will contribute to another round of growth in iPhone sales, which have steadily declined over the past year. The Cupertino tech giant has faced increasing challenges in its key markets, particularly China, where rival offerings from Huawei have hurt Apple’s sales.

Globally, the company also faced increased competition from its rival Samsung Electronics Co Ltd (KS:), which beat Apple to power by incorporating a series of AI features into its flagship Galaxy devices.

Apple suppliers are still cautious about the iPhone’s outlook and anticipate “flat” iPhone shipments for 2024, the Nikkei report said. The firm is also grappling with heightened trade tensions between the US and China, which have seen Beijing block government officials from using Apple products for official purposes.