Apple’s (NASDAQ:AAPL) redesigned iPhone 17 is driving the company’s fastest smartphone growth since Covid-19, according to supply-chain checks and carrier data showing stronger-than-expected demand since its September launch, the Financial Times reported Sunday.
Analysts expect iPhone revenue to rise about 4% in Apple’s (NASDAQ:AAPL) current fiscal year to roughly $209 billion, and nearly 5% in 2026, according to Visible Alpha data cited by the newspaper. The upbeat projections have boosted market sentiment heading into the holiday season, even as AI delays and renewed U.S.-China tariff threats have weighed on Apple’s (NASDAQ:AAPL) shares.
After two years of flat or declining sales, upgrades to the camera, display and battery are persuading customers to replace older models. Bank of America analysts noted that shipping times are longer than in previous years, a sign of strong demand. Wait times are roughly 13% higher than last year, hinting at a wider upgrade cycle, according to Deepwater Asset Management.
Apple (AAPL) will report its fiscal fourth-quarter results on October 30, including early iPhone 17 sales. Store traffic and supply-chain checks suggest “much stronger” orders than for the iPhone 16, according to IDC.
Unit volumes are expected to stay around 235 million through 2026 before climbing above 240 million in 2027, potentially helped by a rumored foldable model. The iPhone still generates more than half of Apple’s (AAPL) $390 billion in annual revenue, supported by trade-in deals and Chinese subsidies for lower-priced models.
Shares hit a yearly high around the launch but have since softened amid tariff concerns. Despite cost pressures, Apple (AAPL) kept iPhone prices steady. Still, Jefferies recently downgraded the stock, warning that investor expectations for iPhone 17 demand may be overly optimistic.