Apple bracing for sales drop: iPhone production predicted to slow as Samsung rises
Being at the forefront of the industry, the company now faces two scenarios: maintaining its position or starting to lose ground. Currently, forecasts and analyses suggest that Apple is planning for a less positive outcome.
Feb 1, 2024 | updated: 4:33 AM EST, March 7, 2024
Prominent analyst Ming-Chi Kuo has provided insights into Apple's plans regarding the production of future iPhone models. His examination of orders placed by Apple with primary suppliers implies that the company is expecting to curtail production. Specifically, the production of the iPhone 15 in the first half of 2024 is predicted to be 15% lower compared to the 14 series from the same period in 2023.
In a similar vein, the manufacturing of the iPhone 16 model in the second half of 2024 is expected to decrease by 10% compared to the 15 series from the corresponding period a year earlier. Kuo further forecasts that this reduction could signify the largest sales drop for Apple among all major phone brands globally in 2024.
One of Apple's main challenges comes from new trends in smartphone technology, such as generative artificial intelligence. This innovative implementation in Samsung's competing Galaxy S24 devices has been so successful that Samsung has decided to increase its sales forecasts by 5-10%. Another issue for Apple is its diminishing position in the Chinese market, where increased competitiveness from Huawei and the growing popularity of foldable smartphones are on the rise.
While leaks suggest that Apple is intensively working on new AI-related features, it's believed that these new solutions will not reach customers until mid-September at the earliest. This is when the launch of the iPhone 16 and the new iOS 18 operating system is expected. Moreover, no indication has been given that the company plans to introduce a foldable iPhone, which could also impact the brand's future market position.
