Morgan Stanley says early demand for Apple's iPhone 17 lineup is "modestly stronger" than expected, led by the iPhone 17, 17 Pro, and 17 Pro Max, while the ultra‑thin iPhone Air shows "relative weakness" nearly two weeks after launch [macrumors.com#2][techradar.com#1][9to5mac.com#6]. The bank expects an imminent build increase, with second‑half 2025 production likely rising from 84–86 million to the low 90 million units, and it raised its Apple price target to $298 [macrumors.com#2][appleinsider.com#5][techjuice.pk#3]. Analysts add that the current share price already reflects strong iPhone 17 demand and are looking ahead to momentum for iPhone 18 and beyond [macrumors.com#2][macobserver.com#4].
Highlights:
- Model mix: Demand is strong for iPhone 17, 17 Pro, and 17 Pro Max, while the ultra‑thin iPhone Air shows relative weakness so far [macrumors.com#2][techradar.com#1][9to5mac.com#6].
- Production outlook: Apple’s supply chain is expected to lift second‑half 2025 iPhone 17 builds from 84–86 million to the low 90 million units [macrumors.com#2][appleinsider.com#5][techjuice.pk#3].
- Valuation view: Morgan Stanley raised its Apple price target to $298 but says the stock already reflects strong iPhone 17 demand [macrumors.com#2][appleinsider.com#5].
- Next cycle: Analysts see momentum carrying into the iPhone 18 cycle, with attention on what’s coming next year [macobserver.com#4][macrumors.com#2].
Our supply chain checks suggest an iPhone 17 build increase is likely imminent, – Erik Woodring
Perspectives:
- Morgan Stanley: Early iPhone 17 demand is modestly stronger than expected, with relative weakness for iPhone Air. (MacRumors)
- Morgan Stanley: Supply chain builds are likely to increase to the low 90M units in H2 2025, and the Apple price target is raised to $298 while noting shares already reflect strong demand. (AppleInsider)
Sources:
- The iPhone 17 series is reportedly selling well – but one model is lagging behind – techradar.com
- New iPhones See 'Stronger Than Expected' Demand With One Exception – macrumors.com
- Apple Plans Higher iPhone 17 Production Amid Strong Pro Model Demand – techjuice.pk
- Morgan Stanley Eyes iPhone 18 Growth After Strong 17 Sales – macobserver.com
- Forget the iPhone 17 – iPhone 18 demand prompts Morgan Stanley to hike AAPL target to $298 – appleinsider.com
- iPhone 17 Pro and iPhone 17 sales are stronger than expected: report – 9to5mac.com
