Apple’s latest iPhone lineup has produced a clear split: the 17 Pro and 17 Pro Max are selling faster than expected, while the iPhone Air is failing to match forecasts. Wall Street is taking note, with Morgan Stanley raising its Apple stock price target and pointing to a stronger 2026 cycle.
What’s happened? Morgan Stanley analysts say Apple is quietly preparing to lift production after stronger-than-anticipated demand for the iPhone 17 Pro and Pro Max. The iPhone Air, meanwhile, has underwhelmed, suggesting Apple’s push to widen its mid-tier market is off to a slow start.
- Apple is expected to increase iPhone 17 orders from roughly 85 million to more than 90 million units.
- Additional supply will be directed primarily at the Pro line, which continues to outpace early forecasts.
- Softer demand for the Air underscores how buyers are clustering around Apple’s flagship devices.
This is important because: The stronger Pro cycle is giving Apple breathing room at a time when Wall Street had braced for a weaker year. Back in March, Morgan Stanley cut its Apple target price over upgrade concerns. That call is now being reversed.
- The firm lifted its price target to $298, pointing to resilience in Apple’s upgrade base.
- Premium sales show Apple’s strategy of leaning into high-margin devices is still resonating.
Why should I care? For buyers, the pattern is clear: consumers are willing to spend more for cutting-edge features, even as cheaper models languish. That divide could shape how Apple designs and prices future lineups.
- The iPhone 17 Pro and Pro Max are emerging as the must-have models for 2025.
- The Air’s weaker traction could influence how Apple positions its lineup in the future.
- If you’re holding onto an older iPhone, you’re part of the group driving the next cycle.
Okay, so what’s next? Morgan Stanley believes the real story is still ahead. They expects six new iPhones in 2026, including a long-rumored foldable, setting the stage for what could be one of Apple’s biggest upgrade cycles yet.
- Base and Pro models will return, alongside the Air and a new “18e.”
- Morgan Stanley suggests that the iPhone Fold can be a standout that could spark massive demand.
- Apple could sell 243 million iPhones in 2026, with a bull case of 270 million.
- If Apple Intelligence features hit big, Morgan Stanley’s price target could climb even higher.
Apple may have a split lineup now, but the market is already looking to 2026. For Pro buyers, the payoff is clear today. For everyone else, the next wave of iPhones may be the one to watch.
