Apple Inc (NASDAQ:AAPL) is showing strong early demand for the iPhone 17, leading to analysts highlighting more upside in shares.
AAPL stock is up today. See the market dynamics here.
The Apple Analysts: Bank of America analyst Wamsi Mohan reiterated a Buy rating on Apple with a $270 price target.
Wedbush analyst Dan Ives maintained an Outperform rating on Apple and raised the price target from $270 to $310.
Bank of America on AAPL: With iPhone lead times trending higher, Mohan said Apple should be a leader in AI.
Mohan said the iPhone 17 Pro and Pro Max trend times are in line with last year's iPhone, but several models are becoming more extended.
Shipping times for the iPhone 17 are the highest in China, according to the analyst. Other regions are also seeing shipping times for the iPhone 17 that are greater than those for last year's iPhone 16.
The analyst highlights the iPhone Air’s readily available stock and asks whether this is related to demand for this smartphone model or high supply.
"In general, a model with a differentiating form factor would likely have increased demand," Mohan said. "Apple could have anticipated this and stocked sufficient inventory, which could explain the lower ship times."
Read Also: If You Invested In Apple Stock Instead Of Buying iPhones Each Year, Here’s How Much You’d Have Today
Wedbush on AAPL: Strong demand for the iPhone 17 could turn into a "real upgrade cycle" for Apple, Ives said in a new investor note.
"We are positively surprised by the demand trajectory with units that now appear to be tracking 10%-15% ahead of iPhone 16 thus far," Ives said.
Ives said demand for the iPhone 17 Pro models is strong, which is a "positive sign for Apple."
"Heading into this iPhone 17 cycle, we were expecting this upgrade cycle to be a good, but not great one. Instead, the combination of a pent-up consumer upgrade cycle with our estimates of 315 million of 1.5 billion iPhones globally not upgrading their iPhones in the last four years, coupled with some design changes/enhancements, has been the magical formula out of the gates."
The analyst said a Street estimate of 230 million iPhones sold in fiscal 2026 could be conservative and will likely be in the 240 million to 260 million range instead.
"The Street is clearly underestimating this iPhone cycle in our view."
Ives said strong demand in China can offset negative growth trends from recent years and provide a rebound into fiscal 2026.
"Apple now seizes this moment after a few frustrating years in China with demand issues a black cloud over the Apple story."
Ives said the AI monetization could add $75 to $100 per share for Apple in the coming years as the AI story finally plays out.
"The elephant in the room has been the invisible AI strategy, with the biggest consumer installed base in the world of 2.4 billion iOS devices and 1.5 billion iPhones, the time is now for Apple to accelerate its AI efforts."
The analyst said the "AI premium" is not priced into Apple's stock, making the company the "large cap tech name to own into year-end and 2026."
AAPL Price Action: Apple stock is up 3.83% to $254.72 on Monday versus a 52-week trading range of $169.21 to $260.09. Apple stock is up 4.37% year-to-date in 2025.
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Photo: iPhone 17 Pro and iPhone 17 Pro Max, courtesy of Apple
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