Apple Stock Surges 4.3% on iPhone 17 Demand

Apple's stock price surged 4.3% on September 22, reaching a high of 256.64 dollars, the highest level since December 2024. This surge was driven by the unexpectedly high demand for the newly released iPhone 17 series, which has sparked optimism about the restart of the upgrade cycle.

The iPhone 17 series has seen a longer delivery time compared to the iPhone 16 series from last year, indicating that demand has exceeded Apple's initial supply. This strong performance provides robust support for Apple to regain momentum in the highly competitive smartphone market.

Particularly noteworthy is the strong demand in the China market. The delivery time for the iPhone 17 in China has been extended the most, which may benefit from positive factors such as a 15% government subsidy.

Analysts note that such supply-demand tightness is not uncommon in the early stages of a new iPhone release, but the extended delivery time is typically seen as an early indicator of product success, especially in the fiercely competitive smartphone market.

Apple's stock price recorded a 4.3% single-day increase on Monday, making it one of the best-performing stocks in the Nasdaq Composite Index for the day. This performance contrasts sharply with Apple's volatile performance in the first half of 2025.

Earlier this year, the stock faced dual pressures: concerns over potential tariff policies and investor doubts about the company's artificial intelligence business prospects, leading to a 30% drop in stock price.

However, with the official launch and start of deliveries for the iPhone 17 series, market sentiment has clearly shifted. The nearly 12% increase over the past month indicates that investor confidence in the new product cycle is recovering.

China's market has become a key growth engine. The strong demand in China is seen as a positive signal for Apple, as China is a "key pivot" for the iPhone 17 upgrade cycle.

Despite facing intense competition from local brands such as Huawei and Xiaomi in the China market, it is believed that the negative growth trend of the past few years will turn positive in the 2026 fiscal year.

The 15% government subsidy policy in the China market has provided additional momentum for the sales of the iPhone 17 in the region.

It is worth noting that Apple's service business is expected to benefit from the strong iPhone demand in the long term. As one of Apple's highest-margin business segments, the growth prospects of the service business directly impact the company's overall profitability.

Stable iPhone demand is crucial because it expands the installed base driving the growth of the service department.

Additionally, a recent antitrust ruling allows Apple to continue its revenue-sharing agreement with Alphabet's Google, providing additional long-term support for the service business.