Apple’s iPhone 17 Victory
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The launch of the Apple Inc. (NASDAQ: AAPL) iPhone 17 prompted a lot of anxiety. However, iPhone deliveries will surge this year, according to the research firm IDC’s forecast for 2025. IDC reports iPhone shipments for 2025 will be up 6.6% to 247.4 million, driven by strong iPhone 17 sales. The forecast has the total value of the iPhones shipped this year at $261 billion.
Apple’s growth rate was well ahead of the industry. IDC says smartphone shipments for the year across the industry will be up 1.5% in 2025 to 1.25 billion. That is based on data from its Worldwide Quarterly Mobile Phone Tracker.
The researcher provided several reasons for the iPhone’s success. One is that its falling sales in China have stabilized, or even improved. iPhone shipments in China for October and November have given it a 20% market share. That is extremely impressive in a crowded market. IDC called it a “phenomenal turnaround.”
IDC also said iPhone shipments were expected to be particularly strong in emerging markets and over the holiday season.
Investors in Apple’s stock were extremely anxious about iPhone 17 sales. Was the new model different enough from the iPhone 16? Did consumers care about a slightly better camera or a faster chip?
Moreover, the iPhone 17 did not ship with Apple’s promised AI upgrade. That will not appear until early next year. Based on recent news, Apple has continued to struggle with this upgrade in an industry in which many AI apps have been phenomenally successful.
Some investors must have seen the iPhone 17 success coming. After a steep sell-off that left Apple’s stock lagging behind the S&P 500 from April through October, the stock surged when Apple announced its most recent quarterly results. The recovery has brought Apple’s stock performance roughly in line with the S&P 500 year to date. Its market cap is $4.28 trillion, which puts it in second place among all publicly held companies, just behind AI juggernaut Nvidia.
Imagine what will happen if Apple’s AI feature is a huge success.