iPhone 17 Demand Could Give Apple Its Next Big Win
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Unexpectedly high demand for the iPhone 17 lineup is expected to allow Apple to beat analyst expectations for its fourth quarter, according to a new report from investment firm Wedbush. The firm also notes that if Apple makes the right moves in its AI plans and partnerships, the Cupertino company’s stock should become even more valuable.
Wedbush raised its Apple target price to $310 in September, thanks to the stronger-than-forecast demand for the iPhone 17 lineup. Now, in a new note to investors shared by AppleInsider, the company says not only will Apple hit that price target, but it will see its stock price continue to rise over the next few years, thanks to AI.
The investment firm expects Apple to easily beat market expectations when it announces its fiscal Q4 earnings on October 30. The firm’s analysts say they are seeing evidence of stronger demand than originally expected, particularly in China and the United States.
Demand for the current iPhone 17 lineup remains high, the analysts say, despite the difficulties the company has faced in delivering on all of its Apple Intelligence promises. Further, while many analysts believe the iPhone Air has not sold as well as Apple hoped, Wedbush believes the device is experiencing higher demand than expected, even in the face of increased competition. The analysts also predict a $75 to $100 rise per share over the next few years if the company can deliver on its AI-related plans.
While the lucrative search deal between Google and Apple, which makes Google the default Safari search engine on iPhones, seemed to be in jeopardy after the US Department of Justice filed an antitrust case, the courts have ruled the deal can continue, and Wedbush believes the partnership could also bolster Apple’s AI ambitions.
When Apple first unveiled Apple Intelligence in June 2024, the company made it clear that its partnership with OpenAI to use ChatGPT as an AI extension was just the beginning, and that it plans to add more third-party extensions over time. Google Gemini is widely expected to be the next addition to its AI arsenal.
Apple stock reached an all-time high of $262.42 on October 20, indicating that Apple CEO Tim Cook had been able to safely navigate the tricky tariff waters created by the Trump administration. If the price reaches or exceeds the $268.26 mark, Apple’s valuation could hit $4 trillion.
In related news, Counterpoint Research says this year’s iPhone 17 models have outpaced their iPhone 16 equivalents in early sales. The lineup has benefited from strong demand for the base iPhone 17 in China, and for the iPhone 17 Pro Max in the United States. Analysts say Apple’s strategy of adding more value to its base models while still keeping higher-end buyers engaged has paid off.
The report goes on to reveal that demand in China for the base iPhone 17 model has been close to double that of its predecessor, the iPhone 16. The iPhone 17 has proven attractive to Chinese consumers, thanks to a better processor, more storage, an improved display, and a better selfie camera, all for the same price. Local promotions and discounts have also contributed to the rise in sales.
Apple is facing a competitive Chinese smartphone market, as both Huawei and Xiaomi have been regaining market share in the country. Counterpoint Research says Apple may have been able to find a balance between performance and price in the price-conscious Chinese marketplace.
As for the US, the iPhone 17 Pro Max is the winner in early sales numbers, as sales have ramped up quickly, thanks to attractive subsidies from the top three US cellular providers. AT&T, T-Mobile, and Verizon increased their maximum promotional offers by about 10% from that offered for the iPhone 16 Pro Max in 2024. If these trends hold through the holiday season, Wedbush’s bullish outlook could prove prescient, making Apple’s iPhone 17 lineup the strongest performer in years.
