Investing.com – Apple has ordered components for a significantly higher number of iPhones than last year, according to a report on Thursday, as the technology giant prepared for a surge in sales fueled by artificial intelligence.

Apple Inc (NASDAQ:) ordered components and parts for 88 million to 90 million of its flagship devices, compared to the original component orders of about 80 million iPhones, according to the Nikkei report. Some suppliers also announced orders for more than 90 million devices.

The report comes just days before Apple unveils its iPhone 16 lineup, which is expected to launch with a host of generative AI features amid growing interest in the industry.

The increased orders reflect a number of analyst forecasts that artificial intelligence will contribute to a new round of growth in iPhone sales, which have been steadily declining over the past year. The Cupertino-based tech giant has faced increasing challenges in its key markets, particularly in China, where competing offerings from Huawei have dented Apple’s sales.

The company also faced increasing competition worldwide from rival Samsung Electronics Co Ltd (KS:), which pre-empted Apple by integrating a whole host of AI features into its flagship Galaxy devices.

Apple suppliers are still cautious about the iPhone outlook, expecting “flat” iPhone shipments in 2024, the Nikkei report said. The company is also grappling with rising trade tensions between the U.S. and China, which have led to Beijing blocking government officials from using Apple products for official purposes.