Apple Inc.’s latest iPhone 17 lineup is showing signs of robust demand that could propel the company’s growth well into 2026, according to recent analyst insights. Morgan Stanley has raised its price target on Apple stock to $298 from $240, citing stronger-than-expected early indicators for the iPhone 17 series. This optimism stems from supply chain checks suggesting an imminent increase in production builds, potentially leading to a 4% rise in fiscal 2026 iPhone revenue through higher unit sales and average selling prices.

The investment bank’s analysis highlights how the iPhone 17 Pro models are particularly driving this surge, with demand outpacing that of the previous iPhone 16 Pro at launch. Data from surveys and lead times indicate that consumers are gravitating toward premium features like advanced AI integration and enhanced camera systems, which Apple has positioned as key differentiators in a competitive smartphone market.

Analysts Point to AI as a Game-Changer for Upgrades

While the iPhone 17’s hardware refinements, such as a slimmer “Air” variant and improved modem technology, contribute to appeal, it’s the software ecosystem that’s fueling excitement. Morgan Stanley’s report, as detailed in a recent AppleInsider article, projects nearly 243 million iPhone units shipped in fiscal 2026, a figure that could boost earnings per share by 2% that year and 6% in 2027. This comes amid broader industry trends where AI capabilities are becoming essential for consumer retention.

Posts on X, formerly Twitter, from financial accounts like unusual_whales and Wall St Engine echo this sentiment, noting Morgan Stanley’s expectations of modest price hikes—the first since 2017—which haven’t deterred buyers. In fact, early sales data from global launches, including strong showings in China despite local competition, suggest that Apple’s strategy of bundling AI features with hardware is resonating.

Mixed Signals from Global Markets and Competitors

However, not all indicators are uniformly positive. A TheStreet report flags potential concerns, such as softening demand in the U.S. for non-Pro models, where wait times are shorter compared to last year. Analysts at Jefferies and UBS, as referenced in X posts by Walter Bloomberg, point to regional variations: robust uptake in China driven by subsidies, but weaker resale premiums for base and Air models elsewhere.

Counterpoint Research’s market share data, accessible via their insights page, underscores Apple’s dominant position, with iPhone sales comprising a significant portion of global premium smartphone revenue. Yet, rivals like Samsung and Huawei are ramping up AI offerings, which could pressure Apple’s margins if demand for the iPhone 17 doesn’t sustain through the holiday quarter.

Investor Implications and Long-Term Forecasts

For investors, this demand trend translates to renewed confidence in Apple’s services ecosystem, projected to reach $100 billion by 2025 according to some analyses. Bank of America and JPMorgan have also noted positive early gauges, as reported in a CNBC piece, tracking better than the iPhone 16 cycle. Morgan Stanley’s hike aligns with this, forecasting an upgrade supercycle extending to the iPhone 18, potentially incorporating foldable designs.

Industry insiders should watch production adjustments closely, as any supply chain bottlenecks could temper enthusiasm. Overall, the iPhone 17’s performance signals Apple’s resilience, blending innovation with pricing power to navigate economic headwinds and maintain its tech giant status. As one X post from Hardik Shah summarized, the raised target reflects optimism in revenue growth driven by demand and future launches.