iPhone 17 Crushes Early Sales Expectations in China and US Markets

TLDR

• iPhone 17 series outsold iPhone 16 by 14% during first 10 days in China and US markets
• Base model iPhone 17 sales nearly doubled in China compared to iPhone 16
• Overall base model sales rose 31% across both markets during launch period
• Evercore ISI added Apple to “Tactical Outperform” list with $290 price target
• Improved chip, display, storage, and camera at same price as iPhone 16 cited as key factors

Apple’s latest iPhone 17 series has posted strong early sales numbers in China and the United States. Research firm Counterpoint released data showing the new models outperformed their predecessors during the initial launch period.

The iPhone 17 series sold 14% more units than the iPhone 16 series during the first 10 days of availability in both countries. This performance marks a positive start for Apple’s newest smartphone lineup, which launched globally in September.

The base model iPhone 17 showed particularly strong results in China. Sales of the entry-level device nearly doubled compared to the iPhone 16 during the same timeframe. Across both the US and Chinese markets, base model sales increased by 31%.

Counterpoint Senior Analyst Mengmeng Zhang attributed the strong performance to the value proposition of the base iPhone 17. The device includes several upgrades over last year’s model while maintaining the same price point. These improvements include a better processor chip, an enhanced display, increased base storage capacity, and an upgraded selfie camera.

The pricing strategy appears to have resonated with consumers in both markets. By offering hardware improvements without raising the entry price, Apple has made the base model more appealing to budget-conscious buyers.

Analyst Outlook

Investment firm Evercore ISI responded to the positive sales data by adding Apple stock to its “Tactical Outperform” list. Analyst Amit Daryanani maintains an “Outperform” rating on Apple shares with a price target of $290. Apple stock traded at $253.17 in pre-market trading, up 0.35%.

The analyst firm points to extended lead times for the base iPhone 17 compared to the previous year. Survey data also indicates strong consumer demand for the new devices. This data supports expectations for a robust iPhone refresh cycle.

In September, Evercore ISI raised its price target from $260 to $290. Consumer survey results showed increased interest in hardware upgrades, particularly for the iPhone 17 Pro and Pro Max models. The survey also revealed a growing preference for higher memory configurations, which could increase average selling prices by approximately 7% year-over-year.

Services Performance

Apple’s App Store revenue grew 7% year-over-year in September. This represents a slowdown from the 14% growth rate recorded in August. Despite this deceleration, Evercore ISI maintains confidence in Apple’s ability to achieve double-digit Services growth for the September quarter.

The firm’s March 2025 Apple Primer identified the company as a “tech staple” capable of sustaining mid-single-digit revenue growth. The report projected low-to-mid-teen growth in earnings per share and free cash flow over the coming years.

Growth drivers cited by the firm include expansion in emerging markets and innovation in AI features. Apple’s strategic moves into healthcare, advertising, and payments also present potential revenue opportunities.

Apple stock currently trades with a market capitalization of $3.74 trillion. The stock has a 52-week range between $169.21 and $260.10. The price-to-earnings ratio stands at 38.34.

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