Apple’s iPhone 15 Pro
Analyst Ming-Chi Kuo says Apple has cut iPhone component orders by 15% year-on-year as users in China increasingly prefer artificial intelligence and foldable smartphones from Huawei.
In his full blog post, Kuo says his claims are based on a supply chain survey that shows Apple has cut orders of key components by 15% year-over-year to about 200 million units. It says that “Apple could have the most significant decline among major global mobile phone brands in 2024.”
According to his estimates, the range of the iPhone 15 will turn out to be 10% lower in 1H24, compared to the iPhone 14 in 1H23. But then he expects the iPhone 16 to be worse, falling 15% in 2H24, compared to the iPhone 15 launch period in 2H23.
Kuo says Apple is facing “structural changes,” by which he means significant changes in what manufacturers are making and what buyers want from smartphones. Saying that weekly iPhone shipments in China have fallen by 30% to 40% over an unspecified number of “recent weeks,” he predicts that these structural changes will mean the downward trend will continue.
Chief among the changes in the smartphone industry is the increased interest in foldable phones from buyers in China. Kuo doesn’t have specific numbers, but claims that foldable phones “have gradually become the first choice for high-end users in the Chinese market.”
Apple has long been reported to be working on a Fold iPhone, but the latest rumors say the earliest it will release is now 2027. Kuo agrees that there won’t be any iPhone with significant design changes in 2024, but there may be in 2025.
However, he does not expect a folding iPhone then. Instead, he believes Apple will then be able to produce an iPhone with hardware features to help with AI.
A final problem for Apple, and one it can’t solve immediately, is the resurgence of Huawei. The local Chinese brand once seemed doomed after a US blacklist limited its ability to buy key components.
At that point in 2021, Apple saw a significant increase in iPhone 13 sales due to Huawei’s problems. Now that the firm is back, however, it’s regaining popularity in China — and is already selling foldable and AI phones.
Separately, Huawei has also been a problem for Apple over its Apple Vision Pro headphones, as it owns a trademark for the words “Vision Pro” in China. Apple is obviously hoping to overcome this problem because Tim Cook has stated that the headphones will be released in China later in 2024, and Kuo also believes that an international launch will come soon.
#Apple #AIpowered #iPhone #fold #stem #growing #decline #China
Image Source : appleinsider.com