Updated on: Oct 23, 2025 03:53 pm IST
Morgan Stanley highlights that initial iPhone 17 sales have already boosted Apple’s stock performance.
Apple’s latest iPhone 17 series could play a key role in helping the company surpass Wall Street expectations for its upcoming Q4 earnings, according to a new investor note from Morgan Stanley. The financial firm joins Wedbush in predicting that Apple will post stronger-than-anticipated results, driven largely by sustained global demand for the iPhone 17 lineup and stable growth in its Services business.
iPhone 17 series sees strong momentum
Morgan Stanley highlights that initial iPhone 17 sales have already boosted Apple’s stock performance, with indicators suggesting that this momentum will extend through the end of 2025. The report cites longer lead times for the iPhone 17 models compared to their iPhone 16 counterparts, implying strong consumer interest.
In China, the iPhone 17 Air has already sold out, while reports from India show double-digit growth for Apple’s 2025 lineup compared to the previous year. Supply chain checks also suggest that Apple’s iPhone 17 orders may reach up to 95 million units in the second half of 2025, though Morgan Stanley’s official estimate remains a conservative 90 million.
Sales estimates revised upwards
Based on these trends, Morgan Stanley has raised its September quarter forecast to 56.9 million iPhones sold, up by two million from its previous estimate. For the December quarter, the firm expects Apple to sell one million more iPhones than Wall Street’s current consensus.
Despite this positive outlook, Morgan Stanley is holding its $298 price target for Apple’s stock, stating that it awaits additional supplier data and sales figures from China’s 11/11 shopping festival before making further adjustments.
The firm notes that while iPhone and Services growth is promising, it does not expect significant gains in other product categories such as iPads or Macs for the remainder of the year.
What’s next for Apple
Looking ahead, Morgan Stanley expects Apple’s capital expenditure reports to shed light on ongoing investments in Private Cloud Compute, which supports its expanding AI ecosystem. Analysts also predict that Apple’s relaunch of Apple Intelligence in spring 2026 and a potential iPhone Fold in September 2026 could further fuel earnings growth, though some reports suggest the foldable iPhone may slip to 2027.
In short, Morgan Stanley’s analysis suggests that iPhone 17 demand remains the key growth driver for Apple’s near-term performance, positioning the company to deliver another quarter that exceeds investor expectations.
