Apple’s latest iPhone launch is off to a stronger start than many expected, and that early momentum is already shifting Wall Street’s expectations for what comes next. A new investment note from Morgan Stanley signals growing confidence in Apple’s 2025 iPhone strategy and sets the stage for a bigger year with the iPhone 18.
Strong iPhone 17 Sales Set the Tone
Apple shook up the lineup with the design-focused iPhone Air alongside the standard, Pro, and Pro Max models. Early retail checks point to healthy demand for the series, with particular strength at the high end. The traction gives Apple a clean runway into 2025.
Morgan Stanley raised its Apple price target to $298 from $240 after what it called a modestly stronger than expected start to the iPhone 17 cycle. The firm told clients that early drivers of iPhone 17 demand increase confidence in the iPhone 18 cycle.
What to Expect from iPhone 18
Morgan Stanley sees several growth levers next year that do not rely on new AI features. The call rests on hardware and upgrade demand.
- An aging installed base ready to upgrade.
- Apple’s first foldable iPhone.
- A wider portfolio with up to six total models.
The firm expects high single-digit iPhone revenue growth extending into fiscal year 2027, driven by that mix of new hardware and timing.
A More Complex iPhone Portfolio Ahead
We previously reported on Apple’s expanding lineup and buyer complexity. You could see the base iPhone 18 and a lower-priced 18e. That approach broadens reach but increases buyer decisions.
- iPhone 18
- iPhone 18 Pro
- iPhone 18 Pro Max
- iPhone Air (minor update)
- iPhone Fold
This spread targets different priorities such as design, camera capability, and price. It also makes comparisons harder, which could push more readers to guides and carrier deals as launch nears.
Apple will report quarterly earnings at the end of October, which will offer a clearer read on iPhone 17 sell-through. For now, early strength has already raised the bar for what Apple can deliver with iPhone 18.
