Apple’s (AAPL) new iPhone lineup has been in stores for one week and demand signals are already firming up. Evercore ISI (EVR) polled nearly 4,000 U.S. customers and called it a “better-than-expected iPhone refresh cycle.” The Pro tiers “continue to resonate with customers,” with 56% of respondents planning to buy an iPhone 17 Pro or Pro Max, above the historical 50% average for prior Pro versions.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
AAPL shares traded lower by 0.9% in pre-market action at $254.55, but Evercore reiterated Outperform and lifted its price target to $290 from $260. The firm pointed to reports of strong first week sales at T-Mobile (TMUS) as added confirmation that the mix is tilting toward higher value models.
iPhone Air Lags as Buyers Flag Design and Battery
The new ultra-thin iPhone Air drew only 9% purchase intent in the survey. Respondents raised concerns about the camera design and battery life. This split between Pro strength and Air softness suggests Apple’s core strength remains concentrated in the top tiers, where pricing power and margins are structurally better.
Hardware Features Pull Buyers In
Evercore found that more shoppers cited camera, battery, and screen as the reasons to upgrade. Interest in artificial intelligence features declined versus last year. Analysts wrote, “This is a key difference that should enable durability as last year the interest was driven by Apple Intelligence that eventually disappointed.” Simply put, buyers are choosing tangible hardware gains they can see and feel, which tends to support steadier replacement cycles.
Apple Stock’s Guidance and Target Move Higher
Apple crossed the threshold of one billion iPhones sold years back, a milestone that showcased its global reach, so upgrade cycles matter more than one-off hype. Evercore lifted its full-year expectations alongside the new $290 target and said the iPhone 17 appears to have exceeded initial expectations in its first week. A stronger Pro mix typically aids average selling prices and can support gross margins through the cycle.
How Should Investors Think about This?
A Pro-led cycle helps revenue quality because buyers lean into higher storage and accessory attach. If AI is not the primary motivation and hardware is, the upgrade curve may prove more durable and less fad driven. The weak read on iPhone Air is a watch item, but it does not change the mix math if Pro demand stays elevated. Short-term share moves can fade quickly, yet the survey’s message is that early demand is skewing to Apple’s most profitable models.
Is Apple Stock a Good Buy?
Apple is rated a Moderate Buy based on 34 analyst ratings in the past 3 months. Out of those, 18 analysts recommend Buy, 14 say Hold, and two rate the stock as Sell. The average 12-month AAPL price target sits at $251.75, which implies a -1.99% downside from the last closing price.
