Forecast: 2024 will not be a bright year for Apple

The 2024 forecasts from Foxconn, Apple's largest manufacturer, particularly for the iPhone, do not paint a very bright picture for Apple either.

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Forecast: 2024 will not be a bright year for Apple

2023 was not a perfect year for Apple, and it seems this situation may continue in 2024. Foxconn, the Cupertino giant's most important supplier, has made a cautious forecast for 2024. The leading iPhone manufacturer expects revenue growth of less than 5% in an environment of intense geopolitical uncertainty.

Foxconn Chairman Young Liu said in an earnings announcement on Tuesday, "If there are no political or macroeconomic changes, the markets will likely grow and we will see growth of about 5%," but what he said next was significant: "However, this kind of growth could easily be offset by geopolitical dynamics."

CAN NEW DEVICES CHANGE THE SITUATION?

According to the report in Chip, although the manufacturer is Apple's largest supplier, its clients also include Microsoft, Meta, Google, and Amazon, making it a good barometer for the technology industry. As reported by Nikkei Asia, the Foxconn chairman believes that growth momentum will primarily come from the company's server business, particularly from demand for cloud services and artificial intelligence servers.

Furthermore, Liu says that global monetary policies and inflation could affect Foxconn's full-year performance in 2024. Despite the uncertainty, Foxconn states that the largest portion of its capital expenditure will be in China, followed by investments in electric vehicle parts in the US, Vietnam, and Mexico, as it continues to invest in developing its business.

Interestingly, although there are no breakthrough sales in most of its businesses, Apple is expected to have a quite busy year in 2024. Apple is expected to introduce the Vision Pro early next year, but it is worth noting that this device is manufactured by Luxshare, not Foxconn.

Additionally, Apple is expected to upgrade its entire iPad lineup with a series that will include the OLED iPad Pro and a larger 12.9-inch iPad Air. Alongside the iPad series, it is also expected to refresh new MacBook models, the Mac mini, and the Mac Studio.

Finally, towards the end of the year, Apple will introduce the new iPhone 16 series and new Apple Watch models. However, for now, leaks suggest that these will not be major updates.

News Source: 12punto