Apple Stock Soars 4.31% on iPhone 17 Demand

Apple Inc. saw a significant surge in its stock price on September 22, closing at $256.08, a 4.31% increase for the day. This marked a new high for the year, with the company's market capitalization reaching nearly 4 trillion dollars. The stock price has risen over 25% since the beginning of the year.

The primary driver behind this stock price increase is the strong demand for the iPhone 17 series. A prominent investment bank upgraded Apple's target price from $270 to $310, indicating a potential 22% increase from the current level. The analysts noted that the global demand for the iPhone 17 series is 10% to 15% higher than that of the iPhone 16, signaling a new growth cycle for Apple.

Throughout the year, Apple's stock price has experienced volatility, with a previous decline of 30%. This was due to concerns over rising costs from uncertain U.S. tariff policies and investor skepticism regarding Apple's slow progress in AI strategy, which is perceived to lag behind competitors by about two years.

In an effort to boost the stock price, Apple's board of directors approved a $100 billion stock buyback program in March. By the end of the second quarter, the company had already repurchased $236.1 billion worth of stock. With the official launch of the iPhone 17 series in September, market sentiment shifted positively, leading to a nearly 12% increase in Apple's stock price over the past month. Investor confidence in the new product is rapidly recovering.

Despite Apple increasing the production of the iPhone 17 series by 25% compared to the previous year, the demand growth rate still outpaces supply expansion. The China market is a key driver of this demand growth. The delivery time for the iPhone 17 in China has been notably extended, directly linked to a 15% government subsidy policy. Apple responded with a "quantity over price" strategy, offering the iPhone 17 standard version with 256GB of storage starting at 5999 yuan, maintaining the same price point as the previous model. With the subsidy, the effective price is as low as 5499 yuan, representing a 15% price reduction compared to the previous model, effectively stimulating the demand for upgrades.

China, which accounts for 27% of Apple's global shipments, is a crucial market for the iPhone 17 upgrade cycle. Despite facing negative growth pressure in the China market over the past few years, the new product is expected to drive a release of upgrade demand, potentially turning the 2026 fiscal year into a period of positive growth.

However, it is worth noting that the market share of iPhone in the high-end smartphone market continues to decline. In the first quarter of 2025, the market share of iPhone in the high-end smartphone market above 6000 yuan in China dropped from 70% to 58%. After the AI function is supplemented, analysts predict that it may regain 10% of the market share. Currently, the domestic version of Apple Intelligence is confirmed to cooperate with Alibaba and Baidu, and it is planned to be pushed with the iOS 26.1 version before the end of 2025.