Apple Boosts iPhone 17 Production, Standard Model Surpasses expectations While iPhone Air Lags
CUPERTINO, CA – Apple is preparing to significantly increase iPhone 17 production in the second half of 2025, perhaps exceeding 90 million units - up from 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 iPhone 17 model, while the iPhone Air appears to be underperforming.
Analysts are observing Apple’s supply chain – encompassing component 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), Morgan Stanley believes the current share price already reflects anticipated strong demand for the iPhone 17 series.
The standard iPhone 17 has already prompted Apple to request at least a 30% increase in daily production from two suppliers following a strong pre-order weekend. Priced at €949, the standard model is positioned as a value offering, being €250 cheaper than the iPhone Air and €350 less expensive than the iPhone 17 Pro.
Notably, the standard iPhone 17 incorporates features previously exclusive to “Pro” models, including a 120-Hertz refresh rate and Always-on display technology. Its 6.3-inch display size matches that of the iPhone 17 pro, further enhancing its price-to-performance ratio.
Initial production plans allocated 25% of iPhone 17 output to the standard model, 10% to the Air, and 65% to the Pro and Pro Max variants.The increased production for the standard iPhone 17 suggests potential softening demand for the higher-end Pro models compared to previous years.
Looking ahead, Morgan Stanley remains optimistic about Apple’s iPhone sales in 2026 and 2027, anticipating the launch of Apple’s first foldable iPhone in September of next year. The analysts describe the foldable iPhone as “Apple’s greatest innovation for years” and a key driver of future growth.
The current situation demonstrates Apple’s success in balancing different price points within the iPhone 17 lineup, even as the iPhone Air has not yet achieved its anticipated market response. Strengthening the standard model’s position could solidify Apple’s standing in the competitive smartphone market long-term.
