Apple (AAPL) is experiencing a resurgence, silencing critics and rewarding investors as concerns surrounding the latest iPhone upgrade cycle prove unfounded. Shares of the tech giant surged to an intraday all-time high on Monday, fueled by a wave of optimistic analyst commentary and strong initial demand data for the iPhone 17 lineup. The stock is poised to surpass its previous record close of $259 on December 26, 2024.
The narrative of iPhone headwinds, driven by factors such as potential tariff impacts and perceived shortcomings, has proven to be inaccurate. New data from Counterpoint Research reveals that the iPhone 17 has outperformed its predecessor, the iPhone 16, by a significant 14% in the U.S. and China within its first 10 days of availability.
According to Counterpoint analysts, the success of the base model iPhone 17 stems from its compelling value proposition. The device boasts a superior chip, enhanced display, increased base storage, and an upgraded selfie camera, all at the same price point as the previous generation. The analysts noted that “Buying this device is a no brainer, especially when you throw channel discounts and coupons into the mix.”
The new iPhone Air model is also exhibiting strong performance, exceeding expectations compared to the iPhone 16 Plus. Pre-orders for the device in China commenced on October 17 and sold out almost immediately signaling strong consumer interest. Importantly, The Counterpoint analysts also pointed to the relevance of the eSIM, of which the iPhone Air is exclusively reliant. The analysts said, “This is a big milestone for Apple and more broadly for eSIM.” The exclusive design points to an aggressive push into the increasingly popular technology that eliminates the need for physical SIM cards. From a strategic point of view, this allows Apple greater control over the cellular certifications and logistics and potentially to negotiate better deals with network carriers.
Wall Street analysts have also jumped on the bullish bandwagon. Loop Capital upgraded Apple to a buy rating from a hold, simultaneously increasing its price target to $315 per share from $226. This new target implies an upside potential of over 19% from Monday’s session highs of approximately $264. Loop analysts said that “While the Street is baking in some degree of outperformance from AAPL’s iPhone 17 family of products, we believe there remains material upside to Street expectations through CY2027,” By citing CY2027 (Calendar year 2027), the firm is suggesting the tailwinds from the iPhone 17 will continue to provide upside for Apple over the coming years.
Melius Research analyst Ben Reitzes echoed this sentiment, asserting that Apple is “on a mission to silence its critics.” Reitzes anticipates a beat and raise quarter, fueled by robust sales in China, margin expansion driven by iPhone 17 Pro Max demand, and reduced tariff pressures. Reitzes stated that “Near-term, sales into China are picking up and margins could deliver upside with iPhone 17 Pro Max momentum and lower hits from tariffs. We see shares getting a lift into CY26 and into a Siri/product event in the March 2026 timeframe,”, reaffirming his buy rating and $290 price target on the stock.
Reitzes also emphasized the potential of Apple’s upcoming Siri update, noting that “Apple’s Siri update has been delayed,” but “it’s about to get better with significant AI enhancements.” The introduction of advanced AI capabilities to Siri is expected to significantly enhance the user experience and unlock new functionalities and could put Apple back into contention regarding generative AI dominance.
While Apple shares had previously underperformed most of its “Magnificent Seven” peers, concerns surrounding AI, regulatory hurdles, and potential tariff increases triggered by Trump administration policy have subsided to an extent. CEO Tim Cook’s commitment to invest an additional $100 billion into U.S. manufacturing further appeases the Trump administration’s call to reshore Apple’s supply chain.
The market sentiment has clearly shifted. Monday’s surge underscores the continued strength of Apple’s core business and the potential for further upside. The company has successfully navigated challenging circumstances and is poised to capitalize on the growing demand for its latest products and services.
Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/11257.html
