According to a recent investment note from Morgan Stanley, Apple’s newly launched iPhone 17 series may play a pivotal role in propelling the tech giant past Wall Street’s forecasts for its forthcoming Q4 earnings.
This financial institution joins Wedbush in its optimistic outlook, foreseeing robust performance driven by the continuous global demand for the iPhone 17 lineup and steady growth in Apple’s Services sector.
Momentum Surrounding the iPhone 17 Series
The application of Ceramic Shield 2 glass enhances the aesthetic and durability of both the front and back. (Ayushmann Chawla)
Morgan Stanley elucidates that preliminary sales figures for the iPhone 17 have already buoyed Apple’s stock performance, with predictions indicating that this upward trajectory will persist into late 2025.
The analysis highlights elongated lead times for the iPhone 17 models, in comparison to their iPhone 16 predecessors, signifying heightened consumer enthusiasm.
In the Chinese market, the iPhone 17 Air has reportedly sold out, while data from India points to double-digit growth for Apple’s 2025 offerings relative to the previous year.
Supply chain assessments propose that orders for the iPhone 17 may escalate to as high as 95 million units in the latter half of 2025, although Morgan Stanley’s conservative estimate stands at 90 million units.
Revised Sales Projections
In light of these encouraging trends, Morgan Stanley has increased its forecast for the September quarter to 56.9 million iPhones sold, marking an uptick of two million from its earlier prediction. Furthermore, for the December quarter, the firm anticipates Apple achieving sales one million units above the current consensus projected by Wall Street.
Despite this optimistic outlook, Morgan Stanley has opted to maintain its price target of $298 for Apple’s stock, indicating that it awaits more comprehensive supplier data and sales metrics from China’s 11/11 shopping festival before rendering further adjustments.
The firm adds a note of caution, asserting that while growth in the iPhone and Services sectors appears promising, it is unlikely significant advancements will emerge in other product lines, such as iPads or Macs, for the balance of the year.
Future Prospects for Apple
Looking to the future, Morgan Stanley anticipates that Apple’s capital expenditure disclosures will illuminate ongoing investments in Private Cloud Compute, which bolsters its burgeoning AI ecosystem.
Analysts also forecast a revival of Apple Intelligence in the spring of 2026 and a possible introduction of the iPhone Fold in September 2026, which could further stimulate earnings growth, although some sources suggest the launch may be pushed to 2027.
In conclusion, Morgan Stanley’s analysis posits that the exhilarating demand for the iPhone 17 remains the primary catalyst for Apple’s imminent performance, positioning the corporation to unveil yet another quarter that surpasses investors’ expectations.
Source link: Hindustantimes.com.
