TMTPOST --   Apple Inc. stock set its first record close to the date of this year   as investors   felt   more confident on   strong   sales   of the latest iPhone   17 series,   especially in the   company ’ s top two markets--China and the   United   States.  

Credit：Apple

Apple shares   rose   3.9%   to   settle   at   a   new   record of   $262.24 on Thursday,   driving the   iPhone maker   to overtake Microsoft   Corporation   as the   second-most   valuable U.S.-listed company. As of   Monday close, Apple was valued at   about   $3.89 trillion,   while Microsoft recorded market   capitalization of   $3.84   trillion.   Nvidia   Corporation   maintained   the leadership with a   marke   value of $4.44 trillion.

A   report from   Counterpoint Research over the weekend fueled   the market sentiment. The global market research firm estimated iPhone   17 series   ave outsold the iPhone 16 series by 14% during the first 10 days of availability in China and the U.S.

Counterpoint   found the   base model iPhone 17,   among four   iPhone variants,   is performing well, especially in China, where consumers are reacting warmly to its strong value offering."A better chip, improved display, higher base storage, selfie camera upgrade – all for the same price as last year ’ s iPhone 16. Buying this device is a no brainer, especially when you throw channel discounts and coupons into the mix. Simply put, it provides extremely good value-for-money, and Chinese consumers are rewarding Apple for that," Counterpoint senior analyst Mengmeng Zhang said.  

In the U.S., the iPhone 17 Pro Max has seen the strongest ramp in demand as the big three carriers boost maximum subsidies by 10%, or $100, reflecting a strategic shift towards ultra-premium customer segments in the U.S.   market. "Carriers here are looking to maximize lifetime value by converting strong device subsidies into years of higher monthly service revenue through 24 or 36-month financing contracts," Counterpoint senior analyst   Maurice Klaehne commented. "The emphasis on Pro Max offers has made the ultra-premium Apple device more accessible to customers, bolstering premiumization trends and strengthening high-value customer ties to the Apple ecosystem."

The eSIM-only iPhone Air is performing slightly better than the iPhone 16 Plus and questions over the availability of iPhone Air in China have been lifted. Apple last week   announced pre-orders for the iPhone Air in China began   on October 17, with official sales starting October 22. "This is a big milestone for Apple and more broadly for eSIM," Counterpoint senior analyst   Ivan Lam said. "But the shorter pre-order period and high price compared to the spec-high and feature-rich base model iPhone 17 means the Air will likely remain niche initially."

Wall Street analysts are more   bullish   on   Apple as   iPhone   17   sales   momentum   is   building.  

Evercore   ISI on   Sunday added Apple   to its Tactical Outperform   List   due to   the robust iPhone demand and   the company ’ s accelerating services   growth,   and reiterated its   Outperform   rating   and $290 price target.  

Evercore ISI said it believes Apple "is well positioned to report upside"   to current September   quarter   consensus expectations and could guide to upside for the next quarter.   The firm said its "positive bias is driven by iPhone data points that suggest this may be more than the average iPhone refresh cycle," noting that "lead times for the base iPhone 17 are above last year ’ s October levels."

Loop   Capital analysts in a note on Monday upgraded Apple to Buy from   Hod   and hiked   its price target   to $315   from   226,   presenting an increase   of 39.4%.   The latest price target suggested upside of around 20%   from Apple ’ s record   high   close on Monday.  

The   latest rating upgrade   and price target reflected stronger-than-expected   demand for the iPhone 17 series   and a multi-year growth cycle extending through 2027.   "We are NOW at the front end of AAPL ’ s long-anticipated adoption cycle that suggests ongoing iPhone shipment expansion through CY2027," Loop Capital said   in   the note.   The firm expects "three consecutive record iPhone shipment years ( CY2025 – CY2027 ) ," projecting 238 million units in 2025, 250 million in 2026, and more than 260 million in 2027.

According to Loop ’ s supply chain work, total iPhone shipments in the third quarter reached 56.5 million, exceeding projections.   "Given all the consternation surrounding the iPhone launch, there can be little debate on how successful the iPhone 17 has been thus far since its debut," Loop said.   It also   noted the iPhone Air   model   sold out minutes after pre-orders commenced in China, and saw   the model   could add "a 4-6 million unit upside" in the fourth quarter.