What’s Driving Apple Stock Rally on Wednesday? – Apple (NASDAQ:AAPL), iShares Core S&P 500 ETF (ARCA:IVV)

Apple Inc AAPL aims to sell at least 90 million iPhone 16 devices in the second half of this year, hoping that AI services will spur demand for the new offering after a difficult 2023. Shares gained on Wednesday after the report.

According to a Bloomberg report, Apple has informed suppliers and partners that it plans to increase shipments of the new iPhone models by about 10% compared to their predecessors, after shipping about 81 million iPhone 15 units in the second half of 2023.

Read also: Google Under Market Pressure as Microsoft Promotes iPhones in China.

Apple is confident that adding several Apple Intelligence features to the iPhone 16 will help boost demand when the model goes on sale later this year, a source familiar with the matter told Bloomberg.

Apple predicts 2024 will be a more solid year, even though it will compete with other AI-enhanced smartphones from rivals like Samsung Electronics Co AND Xiaomi Corp.

The beginning of 2024 in China was rather weak for the iPhone, but from April onwards, demand for Apple’s iconic phones began to rebound clearly, partly thanks to a wave of discounts.

In the second quarter of fiscal 2024, iPhone sales generated more than 50% of Apple’s total revenue, making it the company’s best-selling product.

Apple analysts predict significant iPhone improvements and service expansion in 2025.

Apple shares are up 23% in the past 12 months. Investors can gain exposure to the stock through SPDR S&P500 SPY AND iShares Core S&P 500 ETF IVV.

AAPL price action: At last check on Wednesday, Apple shares were trading 1.45% higher at $231.99.

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Photo courtesy of Apple