Apple Hopes iOS 18 AI Features Will Boost iPhone Shipments by 10% in 2024

Apple wants to ship a minimum of 90 million iPhone 16 models in 2024, reports Bloomberg. Apple is telling its suppliers and partners that it is aiming for 10 percent shipment growth over 2023, when it shipped approximately 81 million iPhone 15 models.

The upcoming ‌iPhone 16‌ models will all use next-generation A18 chip technology, which will support Apple Intelligence. As of right now, only the iPhone 15 Pro and iPhone 15 Pro Max are powerful enough for Apple's AI features, so anyone with an older iPhone that wants to take advantage of the new capabilities will need to upgrade this year. iPhone 15 pricing starts at $799, and that will also likely be the starting price for the entry-level ‌iPhone 16‌ model that will support ‌Apple Intelligence‌.

Apple is expecting ‌Apple Intelligence‌ to increase demand for the new ‌iPhone 16‌ models, which indicates that Apple could see a strong 2024, especially in countries like China. Apple is lagging behind Chinese smartphone manufacturers in AI development, as brands like Xiaomi and Huawei have already shipped AI features.

There is no word yet on how ‌Apple Intelligence‌ will function in China because Apple has not yet established a deal with a Chinese AI company. OpenAI's ChatGPT, which will be available in the United States and other countries, is not able to operate in China. To get similar functionality, Apple needs to ink a deal with a company that operates in China. Apple has been holding talks with Baidu, Alibaba group, and Beijing startup Baichuan AI, but there hasn't been news of an agreement.

‌Apple Intelligence‌ will only be available in U.S. English at launch, and it will not be launching in the European Union when the ‌iPhone 16‌ models come out, which could hurt sales in Europe. Apple said in June that it needs more time to figure out how to make ‌Apple Intelligence‌ compatible with the requirements of the Digital Markets Act.

With ‌Apple Intelligence‌, Apple is introducing a long list of new capabilities, including Writing Tools for proofreading, polishing, and summarizing text, Image Playground for generating images, and Genmoji for creating custom emoji. ‌Apple Intelligence‌ will also be used to overhaul Siri, but the new ‌Siri‌ functionality isn't slated to launch until 2025.