Apple’s iPhone 17
Apple Inc. is poised for a major boost in iPhone sales following the successful launch of its iPhone 17 series, as strong demand for its premium Pro models fuels optimism among investors and analysts.
According to Reuters, early sales of the new iPhone lineup have outperformed expectations in both the United States and China, Apple’s two most important smartphone markets. Research firm Counterpoint reported that sales during the first ten days of launch were approximately 14% higher than those of the previous iPhone 16 generation over the same period. Analysts say this marks one of Apple’s best early sales performances since before the pandemic, signalling that consumer enthusiasm for flagship devices remains resilient despite broader economic uncertainty.
Revenue forecast strengthens on higher-end demand
Analysts expect Apple’s iPhone revenue for its fiscal fourth quarter (July to September) to rise by around 8.6%, reaching an estimated £39.4 billion. Total company revenue for the quarter is projected to increase by about 7.6% to £80.5 billion, highlighting a strong rebound after several slower quarters.
Apple’s share price has mirrored the upbeat sales outlook. The stock posted its best quarterly performance in more than two years, climbing roughly 24% during the July–September period. The rally briefly lifted Apple’s market valuation to nearly £3.1 trillion, reinforcing its position as the world’s most valuable listed company.
Market watchers suggest that this renewed investor confidence reflects not only optimism around iPhone sales but also expectations that Apple will continue to expand its services division, which includes Apple TV+, iCloud, and the App Store, a key driver of recurring revenue and profitability.
Much of Apple’s recent momentum is attributed to its focus on premiumisation, a strategy aimed at encouraging consumers to upgrade to higher-priced models offering enhanced features.
The iPhone 17 Pro and Pro Max include faster processors, advanced displays, and expanded storage, all of which have helped boost Apple’s average selling price and profit margins. “Customers are clearly leaning toward the Pro versions, which provide a more tangible leap in performance,” analysts told Reuters. “That mix shift is very positive for Apple’s margins.” This trend also highlights a broader shift in consumer behaviour. Even as global smartphone shipments remain relatively flat, buyers are increasingly willing to pay more for devices that offer greater longevity and cutting-edge performance, a dynamic that plays directly to Apple’s strengths.
iPhone 17 Air underperforms amid weak demand in China
While the top-tier models are performing well, not every variant has struck the same chord with consumers. The iPhone 17 Air, a thinner and more affordable model priced around £830, has seen weaker sales, particularly in China, where pre-orders began later than in other regions.
Analysts suggest that Chinese consumers perceive the Pro models as offering better value for money due to their superior cameras and display technology. Some also attribute the slower uptake of the Air model to increased competition from local brands such as Huawei and Xiaomi, which continue to offer high-end specifications at lower prices.
Apple’s growth story is tempered by a few headwinds. The company is facing tariff-related costs of approximately £870 million as it shifts more production from China to India in response to global trade tensions. While this move is intended to diversify Apple’s supply chain and reduce long-term risk, it is likely to pressure profit margins in the short term.
At the same time, Apple remains behind competitors such as Samsung and Google in rolling out artificial intelligence (AI) features. Major on-device AI updates to Siri and iOS are expected to arrive only in 2026, leaving Apple playing catch-up in one of the fastest-growing areas of consumer tech. Some analysts believe the company’s deliberate approach could work in its favour if it delivers AI capabilities that are deeply integrated, secure, and privacy-focused, an area where Apple still maintains a strong reputation.
Outlook: all eyes on the holiday quarter
Despite these challenges, analysts view the initial success of the iPhone 17 Pro lineup as a clear sign that Apple’s brand appeal remains strong. The holiday quarter, traditionally the company’s biggest sales period, will determine whether this early surge translates into sustained growth.
If momentum continues, Apple could enjoy its most profitable iPhone season since the launch of the iPhone 12 in 2020. The key test will be whether Apple can leverage its hardware success to expand its lucrative services ecosystem, including iCloud, Apple Music, and the App Store.
For now, the early signs are encouraging. Apple’s latest flagship release has reignited both consumer excitement and investor confidence, setting the stage for a strong finish to 2025 and potentially laying the groundwork for a new phase of growth as it prepares to enter the AI era.
If you are thinking about updating your business devices, then talk to our team today to explore how we can support you.
Follow us on LinkedIn
