Apple's iPhone Refresh Cycle Could Be 'Better Than Expected.' It Has Nothing to Do With AI. -- Barrons.com

Dow Jones
Yesterday

By Mackenzie Tatananni

Just one week has passed since Apple's new iPhone lineup became availa b le worldwide, and insights into customer demand already are emerging.

Evercore ISI's annual survey of nearly 4,000 customers in the U.S. pointed to the start of what the firm called in a note Friday a "better-than-expected iPhone refresh cycle."

The firm reiterated an Outperform rating on Apple stock while hiking its price target to $290 from $260. Shares were down 0.6% at $255.47 in premarket trading while futures tracking the S&P 500 and tech-heavy Nasdaq Composite were flat.

Evercore analysts noted that the iPhone 17 Pro and Pro Max models, which are billed as premium versions of the standard iPhone, "continue to resonate with customers," with 56% of respondents planning to buy one of the versions versus an average of 50%.

The trend only becomes more pronounced compared to demand for the ultra-thin iPhone Air, which debuted this month. Evercore's survey indicated lower-than-expected interest in the new model, with just 9% of respondents saying they planned to buy an Air, expressing skepticism about the camera design and battery life.

"We think Apple's core strength remains concentrated in the Pro tiers, while the iPhone 17 appears to have exceeded initial expectations," the firm concluded, citing reports of strong first week sales from T-Mobile.

Apple's focus on the basic hardware of its new devices appeared to spur refresh interest, the firm contended, with an uptick in respondents citing the new camera, battery, and screen while artificial-intelligence features saw a notable decline. "This is a key difference that should enable durability as last year the interest was driven by Apple Intelligence that eventually disappointed," analysts wrote.

Wall Street is largely bullish on shares of the iPhone maker. Of 50 firms tracked by FactSet, 30 rate Apple at Buy or the equivalent. Eighteen rate the stock at Hold, and two at Sell.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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September 26, 2025 07:40 ET (11:40 GMT)

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