Strong iPhone 17 Sales Expected from Apple

Apple's Quarterly Results Encourage Investors

Apple, with the launch of its new iPhone 17 series on September 19, has seen strong early demand in significant markets, particularly in the USA and China. Innovations such as a sharper display, larger storage options, and improved processor have boosted sales.

Sales of the new iPhone within just a few days of the July-September period provide positive signals for the holiday quarter, a time when many consumers tend to upgrade their devices. Additionally, during this period, Apple shares recorded a 24% increase, marking the best quarterly earnings in the last two years. The company also became the third organization to reach a market value of 4 trillion dollars. However, due to its inadequacy in the artificial intelligence (AI) field, it lags behind other tech giants known as the 'Magnificent Seven.'

eMarketer analyst Jacob Bourne stated, "Apple is gaining from better-than-expected iPhone 17 sales in the USA and China, propelling its earnings report and restoring its status as the top smartphone provider." However, Apple's position in the AI space remains full of questions.

Some research firms, including Counterpoint, estimate that iPhone 17 sales in the first 10 days have been 14% higher than the previous series in the USA and China. Moreover, Apple's September quarter shipments in China showed an increase during a period of intense competition with Xiaomi and Huawei.

However, demand for the iPhone 17 Air model remains lukewarm due to its $1000 price and single-lens camera, with pre-orders in China only starting in mid-October. According to forecasts, Wall Street expects iPhone sales to increase by 8.6%, reaching $50 billion, which would set a record for the July-September period.

Apple's total revenue is expected to rise by 7.6% to reach $102.17 billion, and a profit of $1.77 per share is projected. The company is attempting to shift more iPhone production to India to balance the increasing tariff effects and anticipates customs costs of approximately $1.1 billion for this period.

Analysts indicated they will seek clarity regarding Apple's AI plans following the departure of some key figures from its high-profile AI projects. However, Apple has stated that the AI-enabled Siri will not be launched until 2026. Bob O'Donnell noted, "They are clearly facing challenges. They have not been able to offer an attractive service and it seems they do not have a compelling strategy to retain high-level AI capabilities."