For the fourth fiscal quarter of 2024 (F4Q24), iPhone sales increased approximately 6% year over year. This growth was driven by better production capabilities, mainly for the Pro Max models of the iPhone 16 series.
- iPhone 16 production reached approximately 26 million units in F4Q24, compared to 23 million units for the iPhone 15 in F4Q23.
- Overall, iPhone production and shipments grew by about 4% year-over-year.
- The production improvement was key to F4Q24 results slightly outperforming expectations.
Analysts note that the increased sales mainly reflect improved production rather than a surge in demand, as new iPhones typically sell out immediately upon release.
Apple’s future plans for early 2025 show some possible problems:
- The company thinks it might not do as well as experts expected.
- Overall revenue growth is projected at 3.5% year-over-year (at midpoint).
- Product revenue is expected to grow only about 1% year-over-year, essentially remaining the same.
Apple expects to see little or no growth during the busy selling season. This is despite the launching of new features like Apple Intelligence.
Industry observers believe that while Apple has improved its production abilities, the company may need significant hardware improvements to keep growing. Software updates like Apple Intelligence alone may not be enough.
Some analysts predict that Apple may face pressure on its momentum starting in the first half of 2025.
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