Apple (AAPL) hits record highs on strong iPhone 17 demand and renewed investor optimism.
Apple’s (AAPL) stock soared nearly 4% to a record close of $262.24 on Monday after new data from Counterpoint Research showed iPhone 17 sales have outpaced last year’s iPhone 16 lineup in both the U.S. and China.
3 Key Points
- iPhone 17 outperforms: Sales rose 14% year over year in the first 10 days after launch.
- Analyst upgrades: Loop Capital raised its price target to $315, citing strong demand.
- Buffett’s missed gains: Berkshire Hathaway’s sale of two-thirds of its Apple stake cost an estimated $50 billion in unrealized profits.
Why Are iPhone 17 Sales Surging?
The iPhone 17 series has proven to be Apple’s strongest product launch in years. Counterpoint Research reported a 14% year-over-year sales jump in the first 10 days of availability across the U.S. and China. The standard iPhone 17 alone saw sales climb by nearly one-third versus its predecessor.
“The base model iPhone 17 is very compelling to consumers, offering great value for money,” said Mengmeng Zhang, senior analyst at Counterpoint Research. Zhang highlighted upgrades like a faster chip, better display, improved selfie camera, and higher base storage — all at the same price as last year’s iPhone 16.
Carriers such as AT&T (T), Verizon (VZ), and T-Mobile (TMUS) have fueled sales further through generous subsidies and extended financing plans. The iPhone Air, a thinner and lighter model, also sold out shortly after launch in China.
How Are Analysts Reacting to Apple’s Momentum?
Apple’s strong iPhone cycle has prompted analysts to revisit their outlooks. Loop Capital upgraded AAPL to Buy from Hold and raised its price target from $226 to $315, reflecting confidence in the company’s long-term iPhone adoption cycle through 2027.
Evercore ISI also added Apple to its Tactical Outperform list and maintained a $290 target.
Loop Capital’s John Donovan believes Apple is “at the front end of a long-anticipated adoption cycle,” suggesting sustained demand through future iPhone models — including the 2027 “iPhone 20 Anniversary Edition.”
Apple is scheduled to report quarterly earnings on October 30, with Wall Street expecting $1.76 per share in earnings on $101.7 billion in revenue.
Why Did Warren Buffett Sell His Apple Shares?
Warren Buffett’s Berkshire Hathaway (BRK) once owned nearly one billion shares of Apple — but sold about two-thirds of its position across 2024 and 2025. The move has proven costly. With Apple now trading almost $80 higher than Berkshire’s estimated average sale price, the firm has missed roughly $50 billion in potential gains, according to Barron’s.
Berkshire’s decision to trim its stake was driven by several factors:
- Apple’s position had grown to more than 40% of Berkshire’s equity portfolio.
- Buffett anticipated higher corporate tax rates, which later resulted in roughly $20 billion in taxes on the sale.
- Berkshire aimed to raise cash and strengthen its balance sheet ahead of Buffett’s planned retirement in 2025.
Even after the reduction, Apple remains one of Berkshire’s largest holdings — about 280 million shares as of June 30, representing a quarter of its $300 billion equity portfolio.
How Is Apple Strengthening Its Position in China?
CEO Tim Cook recently praised China’s “vibrant and dynamic” app developer community, calling it a major driver of Apple’s innovation ecosystem. Speaking with China Daily, Cook highlighted the creativity of local developers and the global influence of Chinese games and apps.
Apple has also pledged to increase investment in China, even amid trade tensions and slower economic growth. The App Store continues to be a strong revenue engine, with 10% year-over-year growth in the September quarter thanks to stronger monetization and new developer tools.
The company’s efforts appear to be paying off: Counterpoint’s data shows Chinese consumers rewarding Apple for its improved value proposition and feature upgrades — a positive sign in one of Apple’s most important markets.
What It Means for Investors
For shareholders, Apple’s record-setting rally underscores confidence in both the iPhone 17 upgrade cycle and the company’s long-term growth trajectory.
Despite Buffett’s reduced stake, institutional support remains strong, with multiple analysts turning bullish. Loop Capital’s $315 price target represents roughly 20% upside from current levels, signaling optimism about Apple’s ability to sustain earnings growth through 2027.
Apple’s brand strength, loyal customer base, and growing App Store ecosystem continue to drive recurring revenue — key factors that make AAPL a core holding for many portfolios.
Conclusion
Apple’s latest rally is more than just a reaction to strong iPhone sales — it’s a reflection of the company’s renewed momentum in innovation and global demand. With new products performing well, fresh analyst upgrades, and growing traction in China, Apple appears well positioned heading into its next earnings report.
While some investors may see the stock’s record price as a signal to take profits, long-term holders are being rewarded once again for their patience.
FAQs
What caused Apple’s stock to rise?
Apple shares climbed nearly 4% after Counterpoint Research reported stronger-than-expected iPhone 17 sales and several analyst upgrades.
How are iPhone 17 sales performing compared to iPhone 16?
Sales are up roughly 14% year over year in the first 10 days of availability, led by strong demand for the standard model.
Why did Warren Buffett sell his Apple stake?
Buffett cited potential tax changes and portfolio concentration; however, Berkshire’s sales cost about $50 billion in missed gains.
What’s the new price target for AAPL?
Loop Capital raised its target to $315, while Evercore ISI reaffirmed a $290 target.
When will Apple report earnings?
Apple’s next quarterly report is scheduled for October 30, with analysts expecting $1.76 per share in earnings on $101.7 billion in revenue.
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