Apple’s latest iPhone lineup is off to a solid start, debunking initial reports of weak demand compared to previous models. This is great news for investors, as it indicates potential for a significant sales bump for the tech giant going forward.
Counterpoint Research reports robust demand for iPhone 16 models in India, with sales jumping between 15% and 20% on the release day. Apple’s sales in India grew by 35% in fiscal 2024, showing momentum in the market. Additionally, T-Mobile CEO Mike Sievert noted an increase in iPhone 16 sales compared to last year, indicating strong demand.
With an estimated 300 million iPhones in the installed base not upgraded in four years, the introduction of generative AI features in the latest models could lead to a significant upgrade cycle. Analysts predict a potential jump in Apple’s shipments, making it an attractive investment.
While Apple stands to benefit from the success of the iPhone 16, another stock poised for growth is Taiwan Semiconductor Manufacturing (TSMC). TSMC manufactures the processors powering Apple’s iPhones, with the A18 and A18 Pro processors in the new models made using TSMC’s 3nm process node. Apple’s AI-driven features in the new phones rely on TSMC’s superior chip capabilities.
TSMC’s revenue has surged in recent months, with Apple being its largest customer and accounting for a significant portion of its revenue. Reports suggest that Apple may have secured TSMC’s entire 2nm manufacturing capacity for future iPhone models, further illustrating the strong partnership between the two companies.
With TSMC trading at a lower valuation compared to Apple and significant growth prospects in the AI chip market, it presents a compelling investment opportunity. Investors may want to consider TSMC stock before its potential for further growth materializes.
In conclusion, the latest iPhone models could drive significant sales growth for Apple, benefiting both the tech giant and its suppliers like TSMC. Investors looking to capitalize on the potential success of the iPhone 16 and the AI chip market should consider TSMC as a strategic investment option. Extreme Investor Network offers insights and analysis to help investors make informed decisions in the ever-evolving technology landscape.