Apple Boosts iPhone 17 Production, Standard Model Surpasses expectations While iPhone Air Lags
CUPERTINO, CA – Appleโค is preparing to significantly increase iPhone 17 production in the second half of 2025, โขperhaps exceeding โ90 million units โ- up fromโ the 84 to 86 million units currently anticipated, according to a recent analyst note from Morgan Stanley’s Erik Wogring. The production ramp-up is being driven by unexpectedly strong demand for the standard iPhoneโ 17 model, while the iPhone Air appears to be โunderperforming.
Analysts areโ observing Apple’s supply chain – encompassing โcomponent suppliers, manufacturing partners, and logistics companies – to gauge product demand. Despite raising thier price target for Apple shares to $298 (while the stock traded around $256 at the time of analysis), โMorgan Stanley believesโข the current share price already reflects anticipated strong demand for the iPhoneโฃ 17 series.
The โstandard iPhone 17 has โฃalready prompted Apple to request at least a 30% increase in daily production from two suppliers following a strong pre-order weekend. Priced at โฌ949, the standard model is positioned as a value offering, being โฌ250 cheaper than the iPhone Air โฃand โฌ350 less expensive than the iPhone 17 Pro.
Notably, the standard iPhone 17 incorporates features previously exclusive to “Pro” models, including a 120-Hertzโข refresh rate and Always-on display technology. Its 6.3-inch display size matches that of the iPhone 17 pro, โคfurther enhancing its price-to-performance ratio.
Initial production plans allocated 25% of iPhone 17 output to the standard model, 10% toโข the Air, โand 65% to the Pro and โคPro Max variants.The increased production for the standard iPhone 17 suggests โฃpotential softening demand for the higher-endโค Pro models compared to previous years.
Looking ahead, Morgan Stanley โremains optimistic about Apple’s iPhone sales in 2026 and 2027, anticipating the launch of Apple’s first foldable iPhone in September of next โฃyear. The analysts describe the foldable iPhone asโ “Apple’s greatest innovation for โคyears” and a key driver of future growth.
The current situation demonstrates Apple’s success in balancing different โprice pointsโ within theโ iPhone 17 lineup, even as the iPhone Air has not yet achieved its anticipated market response. Strengthening the standard model’s position โขcould solidify Apple’s standing in โขthe competitive smartphone marketโฃ long-term.