Tech giant Apple’s (AAPL) iPhone 17 saw a significant boost in sales during October, which allowed it to surpass the iPhone 16’s performance from the same period last year, according to a report by Bernstein. More specifically, analysts led by Mark Newman said that combined sales for September and October showed a 20% increase in units compared to the iPhone 16 series. Interestingly, the base iPhone 17 model saw the biggest growth, rising 27%, while the Pro and Pro Max versions each jumped by 20%. However, the iPhone Air lagged behind, mainly due to its delayed release in China.
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Nevertheless, thanks to the overall surge, Apple reached a record market share of 24.2% in October, which also led to a 14% year-over-year increase in revenue and a 40% jump from the previous month. Notably, China was Apple’s fastest-growing market during the period, with unit sales up 38%, while sales in the Americas rose 14.5%. The strong iPhone 17 performance also benefits several key Apple suppliers.
For instance, Taiwan Semiconductor Manufacturing (TSM) and Luxshare are expected to gain from the higher production volumes. In addition, despite rising memory prices, Bernstein believes that Apple won’t be impacted for now, even though the iPhone 17 includes about 25% more dynamic random-access memory (DRAM) than its predecessor. The results also provide a short-term boost for Qualcomm (QCOM), though Bernstein expects Apple to phase out its reliance on the company in the coming years.
Is Apple a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 21 Buys, 12 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $289.49 per share implies 1% upside potential.
