Apple stock climbed Monday after Wall Street analysts noted strong preorders for the company's iPhone 17 series smartphones.
The consumer electronics giant introduced the new handsets last Tuesday and began taking preorders on Friday. The iPhone 17 devices will be available in stores this upcoming Friday.
Strong early sales of the latest iPhones show a pent-up demand for upgrades, Wedbush Securities analyst Daniel Ives said in a client note Monday.
"We believe that iPhone 17 preorders will be up 5%-10% vs. last year as we estimate that roughly 20% of the 1.5 billion users worldwide have not upgraded their phones over the past four years," Ives said.
While the iPhone 17 smartphones lack AI features, they include a processor, the A19, that is 20% faster than the previous chip, the A18, Ives said.
Ives reiterated his outperform rating on Apple stock with a price target of 270.
On the stock market today, Apple stock rose 1.1% to close at 236.70.
The postponed launch of the iPhone Air model in China represents a "near-term hiccup" to the product launch, Ives said. Apple needs a special license for the iPhone Air in China because it uses an eSIM card.
Apple Stock Is Consolidating
BofA Securities analyst Wamsi Mohan said shipping dates for the iPhone 17 are more extended than for last year's iPhone 16 models.
"Globally, on average, ship time for the iPhone 17 Pro is currently at 18 days (vs. 14 days for iPhone 16 Pro) while iPhone 17 Pro Max stands at 25 days (vs. 23 days last year)," he said in a client note. Those premium model handsets appear to be more in demand that the standard iPhone 17 handsets, Mohan said.
Mohan kept his buy rating on Apple stock with a price target of 270.
Apple stock is in a 37-week consolidation pattern with a buy point of 260.10, according to IBD MarketSurge charts. However, IBD analysis has previously pointed to an early-entry buy point of 235.12.
JPMorgan analyst Samik Chatterjee said iPhone 17 availability trends imply stronger demand that last year's launch. He rates Apple stock as overweight with a price target of 255.
However, Jefferies analyst Edison Lee was not impressed by the iPhone 17 preorder trends. He reiterated his hold rating on Apple stock and kept his price target of 205.82.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
