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Apple’s Impressive iPhone 17 Sales and Future Prospects
Apple’s (AAPL) iPhone has recorded robust sales figures recently, buoyed by the release of the iPhone 17 series, according to a note from Bernstein analysts.
Sales Performance Overview
In February, global sell-through of iPhones, which refers to sales from retailers to customers, surged by 26% compared to the same month last year. The analysts highlighted that iPhone 17 unit sales have risen by 20%, comparing figures from September to January against the previous year’s iPhone 16.
The contributors to this growth were significant; the standard iPhone 17 model was responsible for 39% of the sales increase, while the iPhone 17 Pro Max accounted for 21%.
Average Selling Price (ASP) Trends
February also saw the average selling price (ASP) of iPhones increase by 6.9% year on year. According to Bernstein, the ASP has progressively improved month-on-month since the launch of the iPhone 17 in September, bar a slight dip in October. Notably, the ASP growth was most pronounced in China, experiencing a 20.2% increase year on year.
Revenue Insights
Despite the impressive sales figures, it was noted that estimated iPhone revenue for January and February stood at $35.7 billion, falling short of Bernstein’s projection of $56.5 billion. In contrast, Apple celebrated record iPhone revenue of $85.3 billion in its first quarter earnings in January, surpassing Wall Street’s expectations of $78.3 billion compared to $69.1 billion in the same period the previous year.
MacBook Neo: A Potential Game Changer
On the Mac side, Bank of America Global Research analyst Wamsi Mohan speculated that the new MacBook Neo could capture 10% of the entry-level laptop market share. With a price point of $599, such success could add $0.03 to Apple’s earnings per share in 2026. Mohan emphasized that the introduction of the Neo is expected to positively influence both Mac revenues and the company’s overall earnings per share.
Unveiled in March, the MacBook Neo is Apple’s most affordable laptop to date, boasting a 13-inch display powered by the A18 Pro processor, similar to the technology found in the iPhone 16 Pro series.
Long-Term Growth for Services
Mohan suggested that if the Neo succeeds, it could strengthen Apple’s services division, its second-largest revenue source after the iPhone. With an estimated installed base of around 1.5 billion iPhones compared to just 260 million Macs, successful penetration of the Neo into first-time Mac buyers could enhance customer loyalty and drive increased usage of Apple’s services over time.
Challenges Ahead
However, like many in the consumer technology sector, Apple faces challenges due to a global memory supply crunch exacerbated by the AI data centre boom. Manufacturers are prioritising the production of high-margin memory for AI applications, leading to a bottleneck in supply and rising costs for consumer electronics.
Conclusion
In summary, Apple’s iPhone 17 series is driving notable sales growth, supported by rising average selling prices and strong revenue streams. The introduction of the MacBook Neo presents a promising opportunity for reinforcing the company’s foothold in the laptop market. Nonetheless, the ongoing supply chain challenges necessitate vigilance as the company navigates the evolving technological landscape.
