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Investing.com -- Apple’s launch event delivered the expected iPhone 17 lineup, but the debut of the slimmer iPhone Air drew the sharpest reactions from Wall Street.
Analysts were broadly impressed by design changes and hardware upgrades, though opinions diverged on whether the new products can spark a meaningful upgrade cycle.
Evercore ISI argued the iPhone Air could be a turning point. “The product is truly different from the rest of the line-up and could be a ‘MacBook Air’ moment for iPhones,” analysts wrote, highlighting the $999 price point and improved battery life.
The firm raised its target price to $260, keeping an Outperform rating on the stock, citing a potential “multi-year iPhone roadmap.”
Wedbush struck a similarly bullish tone, seeing the new models as the “spark for a new era at Apple.” Analysts pointed to the 315 million iPhone users who have not upgraded in over four years, calling the Air’s thin design and Apple Intelligence features catalysts for an eventual super cycle.
Baird also emphasised subsidies, noting that “aggressive” carrier trade-in values of up to $1,100 could drive adoption. The firm said it sees “green shoots” in smartphone upgrades as the five-year anniversary of Apple’s 2021 cycle approaches.
Other firms were more cautious. HSBC maintained a Hold rating with a $220 target, arguing that “hardware innovation is at every corner” but warning that Apple Intelligence is still not delivering.
“The only AI ‘awe-inspiring’ moment, in our view, was AirPods Pro 3’s live translation capabilities,” analysts said.
Jefferies and TD Cowen highlighted pricing dynamics, with blended iPhone prices effectively rising 3–4% due to higher storage tiers. Jefferies noted regional complexities, including eSIM limitations in China and Hong Kong.
Overall, the event confirmed Apple’s design ambitions but left debate open on whether innovation is enough to fuel a broad upgrade cycle.