Apple’s iPhone 17 Sales Surge Leaves Analysts in Awe
Apple CEO Tim Cook expressed his astonishment at the recent surge in iPhone sales, describing it as “simply staggering.” The company’s latest quarter results surpassed Wall Street’s expectations, with a total revenue of $143.76 billion, including a remarkable 23% increase in iPhone sales compared to the previous year.
Cook hailed the quarter as “fantastic” for the iPhone, achieving an all-time revenue record of $85.3 billion. He credited the success to the iPhone 17 family, which he deemed the strongest and most popular lineup ever, fueled by extraordinary customer enthusiasm throughout the quarter.
Despite the trend of consumers holding onto their smartphones for longer periods due to increased durability, a recent report by CIRP revealed a shift in behavior. The study showed that nearly half of U.S. iPhone users now keep their devices for three years or more, a significant increase from just five years ago.
Analyst Josh Lowitz from Consumer Intelligence Research Partners attributes the surge in iPhone revenue to factors such as Apple’s revised pricing strategies and pent-up demand from customers who delayed upgrades during the Covid-19 pandemic.
Lowitz explained that the pandemic led to strong iPhone sales as consumers redirected their spending from activities like dining out and traveling, resulting in increased disposable income. This, coupled with an aging user base due for upgrades, contributed to the heightened demand.
Wedbush analyst Dan Ives echoed Lowitz’s sentiments, highlighting the slow iPhone 17 upgrade cycle driven by pent-up demand from millions of users worldwide who hadn’t updated their devices in over four years.
Lowitz also pointed out Apple’s strategic decision to streamline its product offerings by discontinuing older models, positioning the standard iPhone 17 as the preferred choice for consumers. The introduction of the Pro and Pro Max variants at reasonable prices further enticed customers, with the premium models accounting for a significant portion of U.S. iPhone sales.
Overall, the positive reviews and reputation for high-quality technology have solidified the iPhone 17 family’s success in the market, garnering praise from both analysts and consumers alike.