• AT&T's chief executive characterizes iPhone 17 demand as robust but not unprecedented
  • Early sales data shows iPhone 17 units up 14% compared to iPhone 16 in initial launch period
  • Morgan Stanley projects Apple will slightly exceed Wall Street expectations for the current quarter

AT&T CEO John Stankey described the current iPhone 17 cycle as "not record-breaking but strong" during an industry conference on Wednesday, offering a tempered but positive assessment of Apple's latest flagship device performance.

The characterization comes as early sales data reveals iPhone 17 units are tracking approximately 14% higher than the iPhone 16 during the same initial launch period, according to people familiar with the matter. Particularly strong sell-through has been observed in the U.S. and China markets, where the iPhone 17 Pro Max has seen 31% year-over-year growth.

"We're seeing healthy demand across the portfolio," Stankey said, while noting the current cycle hasn't reached the explosive levels of some historical iPhone launches. "Consumer appetite remains solid, particularly for the premium models with enhanced features."

Apple's stock has responded favorably to the early indicators, hitting fresh highs this week as extended lead times for certain models suggest supply chain strain from robust demand. The company's shares were up 2.3% in afternoon trading Thursday.

Morgan Stanley analysts project Apple will slightly exceed Wall Street expectations for the current quarter, with both iPhone and Services segments expected to show positive growth. The investment bank maintained its overweight rating on Apple stock, citing "sustained momentum in key markets and supply chain expansion."

Supply chain sources indicate that component manufacturers tied to the iPhone 17 have seen marked increases in orders, particularly for advanced camera systems and display technology. One supplier executive, who asked not to be identified discussing confidential matters, described production schedules as "aggressive but manageable" compared to previous cycles.

The current cycle's strength appears more measured than the explosive "supercycle" periods seen with launches like the iPhone 6 or iPhone 12, but still represents significant growth in Apple's core business. Industry analysts note that extended replacement cycles and economic uncertainty have tempered some consumer enthusiasm, though Apple's premium positioning continues to drive resilience.

AT&T representatives didn't immediately respond to requests for additional comment on the CEO's remarks. Apple typically doesn't comment on specific sales figures during product cycles.

Correction: An earlier version of this article misstated the growth percentage for iPhone 17 Pro Max sales in China. The correct figure is 31% year-over-year.