In 2024, Apple is gearing up to tackle challenges stemming from the surge in AI technology influence in mobile devices and the rising popularity of foldable phones. Apple analyst Ming-Chi Kuo has indicated that the company is making strategic adjustments to its orders for key iPhone components, scaling them down to approximately 200 million units in anticipation of a potential decrease in demand.
Several factors contribute to the projected 15% global decline in iPhone shipments in 2024, as per Ming-Chi Kuo’s insights. One significant factor is the expanding market share of Huawei in China, posing a competitive threat to Apple. Additionally, Apple may face challenges due to Samsung’s advancements in mobile technologies, particularly in the field of AI.
Samsung’s recent introduction of AI-based features in the Galaxy S24 series presents a competitive challenge for Apple, which currently lacks a comparable offering. While the upcoming iPhone 16 series, set to release later this year, may or may not incorporate similar AI technologies, Apple’s existing lineup could face tough competition from the AI-equipped Galaxy S24.
Despite Apple revising its shipment expectations, Samsung remains optimistic about robust sales for the Galaxy S24 series, backed by record-setting pre-orders in various markets. Samsung aims for a 5-10% increase in shipments of Galaxy S flagships in 2024 compared to the previous year. Furthermore, Samsung plans to unveil a new series of flagship phones in the second half of 2024, featuring advanced AI capabilities.
Ming-Chi Kuo also emphasizes the growing interest among phone users in foldable display technology, a trend that Samsung has spearheaded. More Original Equipment Manufacturers (OEMs) are exploring the development of foldable phones. However, Apple currently shows no inclination to enter the foldable phone market.
As the tech landscape evolves, Apple finds itself in a dynamic market where AI and innovative form factors like foldable displays become crucial considerations for consumers. Stay tuned for further updates on how these trends shape the competitive landscape in the mobile industry.