Apple shares jumped nearly 3% Monday after data revealed the iPhone 17 series crushed its predecessor's early performance, outselling the iPhone 16 by 14% in the U.S. and China during its first 10 days. The strong launch signals a potential reversal of recent iPhone sales concerns and validates Apple's strategy of maintaining premium pricing while upgrading core specs.
Apple just delivered the kind of iPhone launch investors have been waiting for. The company's stock surged nearly 3% Monday after Counterpoint Research revealed the iPhone 17 series dramatically outpaced its predecessor's early sales, posting a 14% improvement over the iPhone 16 in both the U.S. and China during its first 10 days of availability.
The data represents a significant win for Apple, especially in China where the company has faced increasing pressure from local competitors like Huawei and Xiaomi. "The base model iPhone 17 is very compelling to consumers, offering great value for money," Counterpoint senior analyst Mengmeng Zhang told Bloomberg. "A better chip, improved display, higher base storage, selfie camera upgrade – all for the same price as last year's iPhone 16."
That value proposition appears to be resonating with consumers who've become increasingly selective about smartphone upgrades. Apple managed to pack meaningful improvements into the iPhone 17 while maintaining the same starting price as the iPhone 16, a strategy that's proving effective in both mature and emerging markets. Zhang noted that when factoring in "channel discounts and coupons," the iPhone 17 becomes "a no brainer" for consumers.
The strong early performance caught Wall Street's attention. Loop Capital upgraded Apple from hold to buy Monday, raising its price target to $315 per share from $226 - representing significant upside from current levels. "While [Wall] 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," Loop Capital's Ananda Baruah said in a note to clients.
The timing couldn't be better for Apple. The company had faced questions about iPhone demand following several quarters of mixed results, particularly in China where local brands have been gaining ground with competitive AI features and aggressive pricing. The iPhone 17's strong start suggests Apple's strategy of iterative improvements combined with AI integration is working.
