Apple's iPhone 17 Fuels Strongest Smartphone Growth Since Pandemic

As of October 20th, 2025, Apple Inc. (AAPL) is experiencing its most robust smartphone growth since the pandemic. The company's latest iPhone 17 model is fueling this comeback, following its biggest redesign in years.

Early indicators from Apple's supply chain and mobile partners suggest stronger-than-expected sales ahead of the iPhone 17's launch. Analysts project Apple's iPhone revenue to climb to $218.9 billion in fiscal 2026, a 5% increase from the previous year. This marks a significant turnaround after iPhone sales fell 2% in 2023 and remained flat in 2024.

The surge in demand is evident across various metrics. Bank of America reports that shipping times for the iPhone 17 are about 13% longer than those for last year's model, often a sign of heightened interest. Additionally, Apple Store data and carrier checks point to higher order activity, with queues outside stores returning, suggesting rising upgrade momentum.

Notably, Apple has managed to maintain pricing despite the threat of tariff risks. The company decided not to pass on potential cost increases to buyers after Donald Trump renewed threats of 100% tariffs on imports from China. This strategic decision has helped sustain demand at a crucial moment.

However, delays in rolling out Apple's new AI features have held back some investor enthusiasm. Even so, the hardware-driven growth is bolstering market confidence as the tech giant enters the holiday quarter. The iPhone remains a vital component, accounting for more than half of Apple's roughly $390 billion in annual revenue.