Apple (AAPL) is off to a strong start with its new iPhone 17 lineup, as preorders quickly outpaced last year’s iPhone 16 sales. This strong start is buoyed by major upgrades and robust demand from key markets such as China.
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Due to overwhelming demand, shipping estimates for several models have already slipped into October. This marks a significant turnaround from the iPhone 16 launch, which saw softer-than-expected sales partly due to the unavailability of key AI features.
China Drives the Preorders Frenzy
In China, a key market for Apple, the initial preorder numbers have been impressive. Sales through the online retailer JD.com (JD) surpassed the entire first-day preorder volume of the iPhone 16 series within minutes of going live. Also, there have been reports of Apple’s website temporarily crashing due to heavy traffic.
This strong demand reflects Apple’s brand loyalty in the Chinese market, despite rising competition from domestic rivals like Huawei.
iPhone 17 Pro Max Leads the Charge
Among all models, the iPhone 17 Pro Max is leading the charge. Apple has reportedly ramped up production by 60% compared to its predecessor to meet this robust demand. Further, the standard iPhone 17 is also doing well, especially the 256GB version, which has become a fan favorite.
Also, the introduction of the ultra-thin iPhone Air, which replaces the Plus model, has been met with a more positive reception than its predecessor.
Bullish Outlook for Apple
The initial sales performance of the iPhone 17 lineup has made some analysts bullish on the tech giant’s prospects. Bank of America analyst Wamsi Mohan reiterated his Buy rating for Apple stock, citing stronger-than-expected early demand.
The five-star analyst noted that shipping times for the iPhone 17 Pro and Pro Max models are longer than last year. He also observed that ship dates for the standard iPhone 17 are the highest since the iPhone 11, indicating “healthy demand.”
Is Apple a Buy, Sell, or Hold?
Turning to Wall Street, Apple stock has a Moderate Buy consensus rating based on 15 Buys, 15 Holds, and two Sells assigned in the last three months. At $241.60, the average AAPL stock price target implies a 2.33% upside potential.
