TMTPOST -- Apple Inc. stock set its first record close to the date of this year as investors felt more confident on strong sales of the latest iPhone 17 series, especially in the company’s top two markets--China and the United States. 

Credit：Apple

Apple shares rose 3.9% to settle at a new record of $262.24 on Thursday, driving the iPhone maker to overtake Microsoft Corporation as the second-most valuable U.S.-listed company. As of Monday close, Apple was valued at about $3.89 trillion, while Microsoft recorded market capitalization of $3.84 trillion. Nvidia Corporation maintained the leadership with a marke value of $4.44 trillion.

A report from Counterpoint Research over the weekend fueled the market sentiment. The global market research firm estimated iPhone 17 series  ave outsold the iPhone 16 series by 14% during the first 10 days of availability in China and the U.S.

Counterpoint found the base model iPhone 17, among four iPhone variants, is performing well, especially in China, where consumers are reacting warmly to its strong value offering.“A better chip, improved display, higher base storage, selfie camera upgrade – all for the same price as last year’s iPhone 16. Buying this device is a no brainer, especially when you throw channel discounts and coupons into the mix. Simply put, it provides extremely good value-for-money, and Chinese consumers are rewarding Apple for that,” Counterpoint senior analyst Mengmeng Zhang said. 

In the U.S., the iPhone 17 Pro Max has seen the strongest ramp in demand as the big three carriers boost maximum subsidies by 10%, or $100, reflecting a strategic shift towards ultra-premium customer segments in the U.S. market. “Carriers here are looking to maximize lifetime value by converting strong device subsidies into years of higher monthly service revenue through 24 or 36-month financing contracts,” Counterpoint senior analyst Maurice Klaehne commented. “The emphasis on Pro Max offers has made the ultra-premium Apple device more accessible to customers, bolstering premiumization trends and strengthening high-value customer ties to the Apple ecosystem.”

The eSIM-only iPhone Air is performing slightly better than the iPhone 16 Plus and questions over the availability of iPhone Air in China have been lifted. Apple last week announced pre-orders for the iPhone Air in China began on October 17, with official sales starting October 22. “This is a big milestone for Apple and more broadly for eSIM,” Counterpoint senior analyst Ivan Lam said. “But the shorter pre-order period and high price compared to the spec-high and feature-rich base model iPhone 17 means the Air will likely remain niche initially.”

Wall Street analysts are more bullish on Apple as iPhone 17 sales momentum is building. 

Evercore ISI on Sunday added Apple to its Tactical Outperform List due to the robust iPhone demand and the company’s accelerating services growth, and reiterated its Outperform rating and $290 price target. 

Evercore ISI said it believes Apple “is well positioned to report upside” to current September quarter consensus expectations and could guide to upside for the next quarter. The firm said its “positive bias is driven by iPhone data points that suggest this may be more than the average iPhone refresh cycle,” noting that “lead times for the base iPhone 17 are above last year’s October levels.”

Loop Capital analysts in a note on Monday upgraded Apple to Buy from Hod and hiked its price target to $315 from 226, presenting an increase of 39.4%. The latest price target suggested upside of around 20% from Apple’s record high close on Monday. 

The latest rating upgrade and price target reflected stronger-than-expected demand for the iPhone 17 series and a multi-year growth cycle extending through 2027. “We are NOW at the front end of AAPL’s long-anticipated adoption cycle that suggests ongoing iPhone shipment expansion through CY2027,” Loop Capital said in the note. The firm expects “three consecutive record iPhone shipment years (CY2025–CY2027),” projecting 238 million units in 2025, 250 million in 2026, and more than 260 million in 2027.

According to Loop’s supply chain work, total iPhone shipments in the third quarter reached 56.5 million, exceeding projections. “Given all the consternation surrounding the iPhone launch, there can be little debate on how successful the iPhone 17 has been thus far since its debut,” Loop said. It also noted the iPhone Air model sold out minutes after pre-orders commenced in China, and saw the model could add “a 4-6 million unit upside” in the fourth quarter.