Bite Into An Apple This Season

Apple is gearing up for a promising holiday season, with expectations of a significant surge in iPhone sales across Africa as consumers look to upgrade to the latest models featuring advanced artificial intelligence capabilities. This anticipated boom could signal the beginning of a “supercycle” in the smartphone market, particularly as Apple aims to solidify its presence in key regions like China and Africa.

Recent data indicates that Apple’s iPhone sales in the Middle East and Africa (MEA) region grew by 12 per cent year-over-year in the third quarter of 2024, despite an overall decline in smartphone shipments across the region due to economic challenges. The introduction of the iPhone 16 series has been a driving force behind this growth, with analysts projecting that Apple could sell a record 240 million new iPhones globally in fiscal 2025, driven by an upgrade cycle that leverages AI technology.

As Apple prepares for this surge, the company is also eyeing new partnerships in China, where approximately 100 million iPhones are ripe for upgrades this year. Analyst Dan Ives from Wedbush estimates that many users have held onto their devices for over four years, creating a substantial market opportunity as new features are rolled out. Ives notes, “The success of iPhone 16 with a strong holiday season ahead will be the launching pad for a renaissance of growth in Cupertino over the next 12-to-18 months.” This growth trajectory is expected to be bolstered by AI enhancements that have yet to be fully deployed in China and other markets, with launches anticipated by April 2025.

A Dazzling Financial Outlook

Apple’s stock recently reached an all-time high of $255.27, marking its twelfth record close this December. The company is currently valued at approximately $3.84 trillion, making it the most valuable publicly traded company globally. Ives predicts that Apple could become the first company to achieve a market capitalization of $4 trillion by early 2025 if its stock price rises above $264.6235.

While Apple faces stiff competition from Android devices, it remains a significant player in the African smartphone market. As of November 2024, Apple’s iOS holds about 13.3 per cent of the mobile operating system market share in Africa. The company’s strategy includes enhancing product availability and implementing targeted promotions to stimulate demand amid macroeconomic challenges facing consumers across the continent.

With analysts optimistic about Apple’s growth potential, the upcoming months will be crucial for determining whether this anticipated supercycle materialises into reality.