Prepare up to 90 Million Devices, Apple Confident Its Latest iPhone Will Be a Hit

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Sources familiar with the plans said the company has even told suppliers to prepare components and parts for about 88 million to 90 million smartphones, more than its initial component orders last year for about 80 million new iPhones.

Apple is preparing to sell its first iPhone with Apple Intelligence (AI), which includes generative AI features. The company has announced that it will hold a launch event for its flagship product on September 9.

Some component makers said they had even received orders for more than 90 million units, though they added that iPhone makers typically order more initially and then adjust the numbers once the product actually starts selling.

However, suppliers remain cautious, as Apple faces increasing challenges from rivals in the Chinese market, which accounted for about 17 percent of its total revenue in the three months to March 30.

Apple has also been caught in the crossfire of U.S.-China tensions. Several times in the past year, China’s Foreign Ministry has flagged concerns over security risks associated with the iPhone.

“We are quite cautious about Apple’s large orders, because we know the Chinese market will definitely provide tough competition due to geopolitics,” an executive at one of Apple’s suppliers was quoted as saying by Nikkei AsiaThursday (29/8).

Jeff Pu, managing director of Haitong Securities, said his firm expects shipments of about 88 million new iPhones this year, but he does not see this as the start of a “super cycle.”

“We anticipate a relatively modest recovery this year,” Pu said.

“Apple Intelligence features, while promising, may not deliver groundbreaking progress in 2024. We believe 2025 could be a more important year as the broader AI ecosystem matures,” he said.