Apple has officially announced that the title of this year's fall product launch event will be "It's Glowtime." It will take place on September 9 at 10:00 am PT. The event is expected to feature the reveal of the new iPhone 16, AirPods, and Apple Watch. The implementation of Apple's AI features into hardware and the revamped version of Siri are also key areas of interest for the market.
When focusing on the iPhone 16 specifically, besides discussions around pricing, hardware specifications, and colors, other popular topics include expected sales volumes, the business model for Apple's AI features, and adjustments and shifts in manufacturing and supply chains.
It is anticipated that Apple will release four models of the new iPhone: iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max.
In terms of sales performance, this year has been marked by the dominance of AI smartphones. Not only has the Samsung Galaxy S24 exceeded sales expectations, but the Google Pixel 9 is also coming up strong.
With the added appeal of Apple's AI features, the expectation is that the iPhone 16 could help Apple achieve similar iPhone sales figures to last year, which is over 80 million units sold in the fourth quarter of 2023. Additionally, due to rising prices in key components, Apple is anticipated to raise the sale prices of high-end iPhone 16 models, which could lead to a revenue growth of around 5% compared to last year.
However, there are still many variables that may affect iPhone sales in the fourth quarter. One of them is that Apple's AI features initially may only support American English and might not be available in regions like China at launch, which could impact consumer purchase decisions. Moreover, the sales performance of the iPhone in China remains a key area to watch.
According to Canalys, as of June this year, Apple's iPhone shipments in China totaled 9.7 million units, down from 10.4 million units in the same period in 2023, a sign of the pressure on iPhone sales in the Chinese market. However, some industry sources expect that with Huawei's Mate 70 series delaying its announcement until the mid-fourth quarter, the absence of a major competitor could allow the iPhone 16 to have a stronger sales performance in the early stages.
On the supply chain front, Apple's manufacturing strategy in India and China continues to draw interest. Reports suggest that this year, Apple will, for the first time, shift some manufacturing of the high-end iPhone 16 Pro and iPhone 16 Pro Max to India, increasing the output proportion of iPhones assembled in India to 14%. This figure is expected to rise to around 25% by 2025. Consequently, it is anticipated that Foxconn and other upstream supply chain companies will continue to increase their investments in India.
Moreover, the transition of iPhone assembly from being primarily led by Taiwan-based companies to increasingly involving Chinese firms, such as Luxshare Precision, remains an observation point for the market.
Specifically, after securing the assembly order for the high-end iPhone 16 Pro Max, Luxshare's efforts to strengthen its manufacturing capabilities to further win Apple's favor, as well as Foxconn's strategy to maintain its leadership in global manufacturing, are expected to continue driving discussions within the manufacturing sector.
