Highlights
- Demand for iPhone 17, 17 Pro, and 17 Pro Max has exceeded expectations, prompting Apple to consider increasing production to over 90 million units in H2 2025.
- The ultra-thin iPhone Air is underperforming in early sales, showing weaker demand compared to the rest of the iPhone 17 lineup.
- Apple is expected to launch its first foldable iPhone in September 2026, potentially sparking a major upgrade cycle and boosting future growth.
Nearly two weeks after launch, Apple’s iPhone 17 lineup is off to a stronger-than-expected start, according to a new report from investment banking firm Morgan Stanley.
Strong Demand for iPhone 17, Pro, and Pro Max
Analysts at the firm said demand for the iPhone 17, iPhone 17 Pro, and iPhone 17 Pro Max has been “modestly stronger than we originally expected.” The assessment is based on extended shipping timelines on Apple’s online store and supply chain checks.
However, the ultra-thin iPhone Air is seeing “relative weakness” in demand compared to the rest of the lineup.
Morgan Stanley analyst Erik Woodring wrote in a research note, “Our supply chain checks suggest an iPhone 17 build increase is likely imminent.” The report indicates Apple’s suppliers may ramp up second-half 2025 production of the new iPhones to over 90 million units, up from the current 84–86 million unit forecast.
Reflecting the stronger performance, Morgan Stanley has raised its price target for Apple shares to $298. Still, the firm cautioned that Apple’s stock, currently trading around $256, already factors in solid iPhone 17 demand. Analysts noted they would need to see further growth “to argue for more sustained near-term stock outperformance.”
Foldable iPhone on the Horizon
The report is optimistic about Apple’s prospects in 2026 and 2027, citing expectations that the company will finally debut its long-rumoured foldable iPhone in September 2026.
“iPhones are getting old and Apple’s biggest innovation in years less than 12 months away,” the analysts wrote, underscoring that the foldable model could drive a significant upgrade cycle.
FAQs
Q1. Which iPhone 17 models are performing well in early sales?
Answer. The iPhone 17, 17 Pro, and 17 Pro Max have exceeded expectations, with extended shipping timelines and supply chain checks indicating strong demand.
Q2. How is the iPhone Air performing compared to other models?
Answer. The ultra-thin iPhone Air is seeing weaker demand than the rest of the lineup, suggesting it hasn’t resonated as strongly with early buyers.
Q3. When is Apple expected to launch its first foldable iPhone?
Answer. Analysts expect Apple to debut its foldable iPhone in September 2026, potentially driving a major upgrade cycle and renewed consumer interest.