Apple’s iPhone 17 lineup is exceeding expectations, with demand continuing to surge across global markets. According to investment firm Morgan Stanley, strong sales are likely to push Apple slightly above Wall Street’s quarterly forecasts.
The firm’s latest investor note highlights that demand for the iPhone 17 has remained consistent since its September launch. Analysts expect this momentum to carry through the end of 2025. Despite the success, Morgan Stanley maintains its $298 price target for Apple stock, choosing to wait for additional data from suppliers and the upcoming 11/11 shopping festival in China.
Strong Global Demand, Especially in Asia
The iPhone 17 Air, a key model in the lineup, sold out quickly in China, while reports from India show double-digit growth compared to last year’s iPhone 16 series. Analysts note that the iPhone 17’s lead times remain significantly longer than its predecessor’s, a clear indicator of ongoing demand.
Morgan Stanley’s supply chain tracking suggests Apple may produce up to 95 million iPhone 17 units in the second half of 2025. However, the firm conservatively estimates total shipments at 90 million. In response to the strong performance in China, it has raised its September quarter forecast by two million units to 56.9 million.
Looking Ahead to Continued Growth
For the December quarter, analysts project that Apple will sell one million more iPhones than Wall Street’s current consensus. Morgan Stanley also expects Apple’s Services division to grow, while iPad sales remain unchanged.
The firm points to Apple’s rising capital expenditures as a sign of investment in private cloud computing. Looking forward, Apple is expected to benefit further from the relaunch of Apple Intelligence in 2026 and the debut of the long-rumored iPhone Fold later that year — a development that could set new records for the company’s performance.
