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    Home » iPhone shipments rebound thanks to AI and discounts
    Apple iPhone shipments rebound thanks to AI and discounts.
    Apple iPhone shipments rebound thanks to AI and discounts.
    AI

    iPhone shipments rebound thanks to AI and discounts

    By Heidi LuoJuly 15, 2024No Comments3 Mins Read
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    • Apple’s iPhone shipments rebound with AI ans strategic discounts during China’s 618 shopping festival.
    • Apple sets ambitious target of 90 million iPhone 16 unit shipments thanks to new AI features.

    OUE TAKE
    Apple’s iPhone sales rebounded slightly in the June quarter, with 45.2 million units shipped, up 1.5% year-on-year despite a slight decline in market share. This recovery was largely fuelled by heavy discounting during China’s 618 shopping festival. Apple’s strategic use of artificial intelligence in its devices is aimed at increasing consumer appeal and differentiating itself in a highly competitive market. The company is set to further this strategy by aiming to ship 90 million iPhone 16 units in the second half of the year amid stiff competition from rivals such as Samsung and Xiaomi, as well as navigating China’s strict AI regulations.
    —Heidi Luo, BTW reporter

    What happened

    Apple’s iPhone sales rebounded in the June quarter with 45.2 million units shipped, a modest 1.5% increase year-on-year, despite a slight decline in market share from 16.6% to 15.8%.

    This stabilisation was largely due to the 618 shopping festival in China, where deep discounts heavily influenced consumer purchases. Amid this recovery, global smartphone shipments grew 6.5% overall to 285.4 million units and consumer sales grew 6%, according to Counterpoint Research.

    Competitors such as Xiaomi benefited from this period of growth, driven by their strong performance in the entry-level segment and emerging markets. Similarly, Huawei made a significant comeback, which intensified the competitive dynamics within the industry.

    In response to these market pressures, Apple not only cut prices, but also pushed ahead with technological advances. In particular, it integrated artificial intelligence into its devices to increase consumer appeal.

    Also read: Apple iPhone sales surge 52% in China amid rising competition

    Also read: Apple’s AI push may boost iPhone sales as customers seek to upgrade

    Why it’s important

    In addition, Apple is expected to ship at least 90 million iPhone 16 units in the second half of this year, up 10% from the approximately 81 million iPhone 15 units shipped in the same period last year.

    Apple is confident that the new AI features will boost sales amid stiff competition from other tech giants such as Samsung, which shipped 53.9 million units with a slight growth of 0.7%, and Xiaomi. However, in the highly competitive Chinese market, Apple continues to face challenges from local brands such as Huawei, which has gained momentum with advanced technologies such as a 7-nanometer processor.

    The broader geopolitical landscape, including China’s strict AI policies, also poses significant hurdles. “Stringent Chinese restrictions may hamper the company’s initial attempts to build AI into its products. A big question going forward will be how Apple complies with Beijing’s AI policies.” said Nicole Peng, senior vice president at Canalys.

    AI features Apple's iPhone Tech giant competition
    Heidi Luo

    Heidi Luo is an intern reporter at Blue Tech Wave specialising in IT and tech trends. She graduated from Cardiff University. Send tips to h.luo@btw.media

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