Apple Inc (NASDAQ:AAPL, ETR:APC) is seeing strong early demand for its newly unveiled iPhone 17 lineup, according to analysts at Wedbush, who reiterated their ‘Outperform’ rating and $270 price target on the stock.
Shares traded hands at $233 on Friday afternoon.
Wedbush said it expects pre-orders for the iPhone 17 to be up 5% to 10% when compared to last year and highlighted what it called a significant upgrade opportunity.
“We estimate that roughly 20% of the 1.5 billion users worldwide have not upgraded their phones over the past 4 years, speaking to this massive upgrade opportunity on the horizon for Cupertino,” the analysts wrote.
The firm said while skeptics point to the absence of Apple Intelligence features at launch, Apple is instead prioritizing a broad upgrade cycle into year-end.
“[CEO Tim] Cook & Co. looks to leverage the largest consumer installed base in the world,” Wedbush said, noting that all four new iPhone models are set to go on sale this weekend.
On pricing, Wedbush argued that higher costs for Apple’s flagship devices are likely to offset trade-related pressures.
“We believe that the incremental price increases for its flagship iPhone 17 Pro to $1,099 will more than offset the anticipated ~$1 billion headwind in the September quarter as the company shifts its production to India,” the analysts wrote.
The new devices also feature upgraded chips aimed at supporting artificial intelligence applications.
The firm pointed to the A19 processor, which it said “features a 6-core CPU, 5-core GPU that’s 20% faster than A18’s, and a 16-core neural engine that will drive local LLM usage.”
Wedbush added that these advances, combined with Apple’s AI partnerships, could help set up “an eventual super cycle over the next 12 to 18 months.”
The note also pointed to Apple’s positioning in the wake of Google’s recent antitrust case.
“While in theory Google is barred from ‘exclusive deals’ for search, the groundwork is now in place for Apple to continue its deal while leading Apple to likely double down on an AI-related partnership with Google Gemini,” the analysts wrote.
Still, Apple is contending with a setback in China, where the release of its new iPhone Air has been delayed due to regulatory concerns over its eSIM-only design.
“Earlier today, Apple postponed the launch of its new iPhone Air model in China…with the Chinese government requiring wireless carriers to gain a special license before selling into this market,” Wedbush noted.
The analysts called the situation a “near-term hiccup” but expressed confidence Apple will secure approval.
“We believe that AAPL will gain regulatory approval soon to sell its high-demand product into this marquee region,” they wrote, adding that Cook is “acting as 10% politician and 90% CEO to ensure Cupertino is in smoother waters moving forward.”