Apple continues to see strong demand for the iPhone 17 family. Morgan Stanley says the early sales momentum looks likely to keep Apple above Wall Street expectations for the quarter. The firm raised some unit forecasts and noted longer lead times for many models.
The strongest signals come from China and the United States. Research firms report the iPhone 17 line sold about 14 percent more in the first ten days than the iPhone 16 did in the same period. In China, the base iPhone 17 nearly doubled unit sales versus the prior generation. In the United States, the iPhone 17 Pro Max is driving premium upgrades.
Morgan Stanley view
Morgan Stanley calls the demand modestly stronger than it expected at the start of the cycle. The bank raised its September quarter iPhone forecast by two million units. It also said its supply chain checks imply orders for the second half may reach around $95 million units. That figure is higher than earlier industry plans. Morgan Stanley continues to monitor supplier data and China shopping events for final confirmation.
Lead times and regional detail
Analysts track shipping and lead time data as an early proxy for demand. Lead times for many iPhone 17 models are longer now than they were for iPhone 16 at the same point last year. In China, the iPhone Air showed particularly long lead times after preorders opened. Market watchers see that as a sign of stronger local demand and of constrained early supply.
Services and other segments
Morgan Stanley expects the main growth drivers to be iPhone units and Services revenue. The bank does not see major near-term gains for iPad or other hardware lines based on current orders. It also flagged Apple capital spending as a line item to watch for signs of new private cloud compute investments. The firm expects renewed Apple Intelligence features and a foldable iPhone at some point to add upside in 2026.
Why this matters
Strong early iPhone performance lifts more than handset revenue. It helps services, it aids ecosystem engagement, and it supports Apple margins at scale. Even a small beat in unit sales can move earnings because iPhone sales carry a high gross margin and because they drive subscriptions and app purchases over time. Morgan Stanley treats the current signals as constructive but still conservative until supplier and retail data confirm a sustained trend.