Apple has significantly increased its orders for components for iPhones this year, according to a Nikkei report on Thursday. This move reflects the technology company's preparations for a possible boost in sales driven by artificial intelligence.

Component Orders Exceed 90 Million

Apple Inc. (NASDAQ:AAPL) placed orders for components and parts for between 88 million and 90 million of its flagship devices. This represents an increase compared to initial orders last year, which were around 80 million iPhones, according to the Nikkei report. Additionally, some suppliers indicated that orders could exceed 90 million units.

iPhone 16 Launched with AI Features

This increase in orders comes just before the launch of the iPhone 16 range, which is expected to integrate several generative artificial intelligence functions. This move comes amid growing industry interest in AI capabilities.

AI-Driven Growth Predictions

The increase in orders reflects predictions from several analysts who suggest that artificial intelligence could drive a new stage of growth in iPhone sales. These sales have shown a downward trend over the last year. Apple has faced increasing challenges in its key markets, especially in China, where competitors such as Huawei have captured some of Apple's market.

Global Competition on the Rise

Globally, Apple has also seen increased competition from Samsung Electronics Co Ltd (KS:005930). Samsung has surpassed Apple by incorporating several artificial intelligence features into its flagship Galaxy devices, further putting pressure on iPhone sales.

Supplier Caution and Trade Tension

Despite expectations, Apple suppliers remain cautious about the future of the iPhone. They anticipate that iPhone shipments could remain “stable” in 2024, according to the Nikkei report. Additionally, Apple faces increasing trade tensions between the United States and China, which has resulted in Chinese government officials being banned from using Apple products for official purposes.