According to reports from Bloomberg on July 10, Apple is anticipating a boost in demand for its iPhones due to the introduction of new artificial intelligence (AI) services. The company has set a target of shipping at least 90 million iPhone 16 devices in the second half of this year, which represents a 10% increase from the 81 million iPhone 15 units shipped in the latter half of 2023. The debut of Apple Intelligence features on the iPhone 16 is expected to drive the demand for the smartphones once they go on sale later this year. Apple's shares rose by as much as 1. 8% and reached a record high following the release of these figures. Bloomberg Intelligence analysts Anurag Rana and Andrew Girard commented that Apple's shipment forecast is a positive sign in light of sluggish smartphone sales over the past two years. However, market intelligence provider IDC predicts that while worldwide smartphone shipments will grow by 4% in 2024, Apple's shipments are projected to grow by only 0. 7%.

IDC attributes Apple's slower growth to increased competition in China. Nevertheless, they believe that a strong AI strategy from Apple, with clear use cases, could accelerate growth and reignite demand for iPhones, particularly in China. On June 10, Apple unveiled its new suite of AI features, Apple Intelligence, with the aim of revolutionizing the user experience on the iPhone, Mac, and iPad, while prioritizing user data protection. Apple CEO Tim Cook highlighted that Apple Intelligence combines generative AI with a user's context to provide genuinely helpful intelligence, all while ensuring privacy and security. The smartphone industry as a whole expects AI advancements to bring about significant changes, as reported by PYMNTS in May. It is predicted that AI will enable the introduction of advanced features and transform how users interact with their devices.