iPhone 17 Is a Big Win for Apple

"The iPhone 17 was a big success in both China and the United States recently. Apple Inc. ( NASDAQ: AAPL) sold more units than the iPhone 16 did in its first 10 days on the market. The jump was 14%. Consumers were mostly drawn to the base version. Many did not move upmarket to the iPhone 17 Pro. The data comes from Counterpoint Research's weekly smartphone sell-out tracker."

"The base model, the researchers said, was viewed as a better value, especially in China. It has almost all of the new iPhone 17 features of the more expensive versions: a better chip, improved display, higher base storage, and a better selfie camera upgrade. In the U.S., consumers also found deals. The largest carriers offer attractive financing, expecting that customers who sign longer contracts for the iPhone 17 will remain loyal over time."

"The expensive contracts often drive sales of the iPhone 17 Pro Max. Apple's stock recently hit an all-time high. This makes it the second most valuable company in the world after Nvidia. The iPhone sales news helped. Apple needs China, the world's largest smartphone market, but does not have it. Sales there totaled $15.3 billion in the most recent quarter. That was only 16% of Apple's total for the period. And these sales were only up slightly from $14.7 billion the year before."

"The stock performed poorly early in the year, especially compared to other mega-tech companies. Investors worried that Apple did not have a foothold in the artificial intelligence (AI) market. Its first advanced AI software will not be out until early next year. Several investors, including Jim Cramer, look at a dollar as a dollar. As long as iPhone sales are strong, the balance of the company will take care of itself. So far, the wind is blowing in that direction."

iPhone 17 unit sales rose 14% compared with iPhone 16's first 10 days, with the base model capturing most consumer demand. The base model delivers many flagship features—a faster chip, improved display, higher base storage, and an upgraded selfie camera—making it especially compelling in China. U.S. buyers benefited from carrier financing and longer contracts that encourage loyalty and support premium model purchases like the Pro Max. Apple stock reached an all-time high and became the world's second most valuable company after Nvidia. China sales were $15.3 billion (about 16% of revenue), up only slightly year-over-year. Advanced AI software is expected early next year.

Read at 24/7 Wall St.