Bigger Than Expected: The Apple iPhone 17 Surge

The iPhone 17 series is off to a notably strong start, especially in the U.S. and China, outpacing its predecessor in multiple metrics.

What the data show:

• Research firm Counterpoint Research reports that in the first 10 days of availability in the U.S. and China, iPhone 17 series unit sales were about 14% higher than the iPhone 16 series during the same launch period.
• The base model (non-Pro) iPhone 17 in China “nearly doubled” the units sold compared to that model’s counterpart in the iPhone 16 era.
• Across the two markets, the base model’s increase is about 31% over the comparable iPhone 16 timeframe.
• Separately, shipments data from IDC show that Apple’s smartphone shipments in China in Q3 2025 rose about 0.6% year-on-year to 10.8 million units (while the broader market fell ~0.6%), and Apple’s market share there reached 15.8%. The strength was attributed to the “value-for-money base model iPhone 17.” The Business Times+1

What’s driving it:

• Upgrade value: The iPhone 17 base model offers enhancements (new chip, better display, higher base storage) at the same starting price as its predecessor, making the upgrade more compelling. Reuters
• Value tier resonance in China: Analysts point out that in a market with slower growth and strong local competition, the “value-for-money” model is gaining traction — a factor boosting the lower-cost iPhone variant. The Business Times+1
• Supply responding to demand: Press reports indicate that Apple expanded production of the iPhone 17 base model by around 40% to meet stronger than anticipated demand. The Apple Post+1

Why this matters:

• For Apple, this upswing is significant because the broader smartphone market has been soft; a strong launch lifts investor sentiment and gives momentum heading into the holiday quarter.
• For device makers and startups, it signals that meaningful upgrades + right pricing still ignite demand — even when the product category feels mature.
• For investors and ecosystem players, a strong hardware cycle can boost accessory, services, and upgrade-loop earnings, not just immediate device sales.
• On the competitive front, this shows Apple can still perform well in China — critical given the heavy local rivalry and shifting market dynamics.

Caveats & things to watch:

• These figures describe early launch period (~10 days) in the U.S. and China - it’s not full-quarter data. The sustained upgrade loop and global rollout will matter more for long-term trend.
• Strong base model demand is good, but high-end (Pro/Ultra) model performance can influence average selling price (ASP) and profitability, not just unit counts.
• Competition remains intense (especially in China), and Apple will need to maintain its edge in product differentiation and ecosystem lock-in.
• The strong early uptake may also reflect pent-up demand, so tracking retention and upgrade cycle timing will be key.