Can Apple Sell 90 Million iPhones?

"Though it varies from analyst to analyst, the expectation is that Apple Inc. ( NASDAQ: AAPL) needs to sell 90 million iPhone 17s this year for the new smartphone to be considered a success. The most recent forecast is from Morgan Stanley, which thinks iPhone 17s orders from suppliers will be nearly that high. Of course, orders and sales are not the same thing. Nevertheless, it is a good measure of magnitude."

"Apple has over $130 billion in cash and marketable securities. It can borrow an infinite amount of money at low interest rates However, it is not building a data center with xAI, nor has it set a deal with OpenAI to build a special AI feature for the new iOS. Instead, it is content to delay an AI feature for another several months."

Apple needs to sell about 90 million iPhone 17s this year to call the model a success, with Morgan Stanley forecasting supplier orders near that level. Orders are not the same as sales but indicate magnitude. Apple’s stock is up only 3% year-to-date, trailing megatech AI-driven gains because integrated iOS AI is delayed until next year. Hardware upgrades like a new camera, faster processor, and quicker charging may not spur many upgrades from iPhone 16 owners. Apple holds substantial cash and can borrow cheaply but has not pursued major AI partnerships or built new data centers. Popular third-party AI apps are already available on iPhones, making a landmark iOS AI launch more difficult, and management appears unusually cautious about accelerating AI.

Read at 24/7 Wall St.