AAPL Stock Eyes New Highs on iPhone 17 Upgrades, AI Boost
Apple Today
- 52-Week Range
- $169.21
▼
$260.10
- Dividend Yield
- 0.44%
- P/E Ratio
- 36.03
- Price Target
- $241.93
During the first half of September, tech giant Apple NASDAQ: AAPL made multiple key product and software announcements. Of course, the most talked about is its latest iPhone lineup on Sept. 9, followed by a deeper reveal of its Apple Intelligence features on Sept. 15.
Over the past several years, Apple’s product revenue growth has been anemic. Nearly all of Apple’s overall growth has come from its services segment, which has increased by 11% or more in each of the last six quarters.
Given this, an important question arises: Do Apple’s new products represent big enough improvements over past generations to spark growth in the segment? If so, they could be a key catalyst for Apple stock, which is currently down around 7% from its all-time high.
iPhone 17: Strong Reviews and Early Demand Signals
Apple Inc. (AAPL) Price Chart for Thursday, September, 18, 2025
The feedback from tech reviewers has been mostly very positive.
Tom’s Hardware says the entry-level model got “some of the biggest upgrades in years,” including a significantly upgraded display, fairly substantial camera, and durability improvements. Additionally, Apple claims it offers eight more hours of battery life and the ability to charge faster than the iPhone 16.
Storage has doubled from the prior generation without a price hike, with the base model starting at $799. The Pro and Pro Max versions also have an updated visual design, with their “camera bumps” extending across the phone’s width, marking the first major visual change in years.
Overall, Apple’s iPhone 17 improvements are more substantial than previous upgrades, which could spark a long-awaited upgrade cycle.
Early preorder data supports the notion of a resurgence in demand. Renowned TF International Securities analyst Ming-Chi Kuo reports that preorders for the iPhone 17 are outpacing those of the iPhone 16. This comes as iPhone production is up 25%, but lead times are a week longer.
This combination suggests that demand is up so much that even with higher production, customers will need more time to receive their devices. That’s a strong early sign for the iPhone 17 lineup, and could finally trigger the upgrade cycle Apple has been hoping for.
iPhone Air: Apple’s Big Question Mark
Apple also released a completely new phone, the iPhone Air. At $999, it’s more expensive than the iPhone 17 yet features only one camera and shorter battery life. However, it does offer the same battery life as the iPhone 16 Plus, which it replaces in the new lineup.
The main draw of the iPhone Air is its ultra-slim, minimalist design. It is around 29% thinner than the iPhone 17 and is Apple’s thinnest phone to date. Overall, it’s hard to say to what extent consumers will be willing to pay a higher price for a simply thinner device.
Still, there could certainly be a cohort of customers who value form over function, and may not have upgraded at all otherwise. According to Kuo, the early data on the iPhone Air has not been so promising. He does note that it will take longer to assess the demand for this brand-new device, given the lack of comparable predecessors.
Apple Intelligence: AI Features Open New Revenue Doors
Perhaps the most forward-looking development is Apple’s expansion of its Apple Intelligence platform.
Third-party developers can now access the large language model that underlies Apple Intelligence, meaning they can now more easily add artificial intelligence (AI) features to their iOS applications.
Apple Stock Forecast Today
$241.93
1.74% UpsideModerate Buy
Based on 32 Analyst Ratings
| Current Price | $237.80 |
|---|---|
| High Forecast | $305.00 |
| Average Forecast | $241.93 |
| Low Forecast | $170.00 |
This could open a significant level of new ways to use AI on an iPhone, potentially making consumers more likely to upgrade. It also helps dispel some of the angst among analysts that Apple has been lagging in AI.
Overall, Apple’s latest device lineup and new Apple Intelligence features have a strong possibility of accelerating its product revenue growth. Thus, it would not be surprising to see shares eclipse all-time highs going forward.
Notably, the MarketBeat consensus price target on Apple is $242, implying only 1% upside versus the Sept. 17 close.
Still, five analysts who updated their forecasts in September placed price targets on the stock above its all-time high closing price of $258.10.
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