Apple’s New iPhone 17 Lineup Has Wall Street Already Looking to Next Year

Apple introduced a new iPhone just a few days ago. Some Wall Street analysts are already waiting for the next one.

Tech giant Apple’s (AAPL) biggest update from this week’s new iPhone 17 lineup was a thinner model, which some analysts said exceeded muted expectations—but still left many fans waiting for more. 

“The iPhone Air is truly differentiated, sleeker, and thinner in-person than we expected,” said Morgan Stanley analysts, who came away from the event calling it a “small positive surprise.” Still, they and others suggested that more highly anticipated updates expected next year could provide a bigger catalyst for the company’s stock.

The shares have slipped almost 2% in the days since Apple’s iPhone 17 launch to finish Friday’s session around $234. They’ve dropped more than 6% since the start of the year, making it the worst-performing member of the Magnificent 7 for 2025. Until this week, Tesla (TSLA) occupied that title, but a rally to end the week brought its stock closer to break-even for the year.

Analysts surveyed by Visible Alpha are divided on whether Apple’s stock still has room to rise, with as many neutral as “buy” ratings at four each. (Just one analyst tracked has advised selling the stock.) Their mean target around $240 would suggest less than a 3% gain from Friday’s level.

Analysts Didn’t See Many ‘Awe-Inspiring’ Moments

Apple Intelligence, HSBC analysts wrote, “is still not delivering on all promises made in 2024.” They reiterated a neutral rating on the stock after the event.

“The only AI ‘awe-inspiring’ moment, in our view, was AirPods Pro 3’s live translation capabilities,” they said, though UBS and others suggested they don’t view the translation features becoming a “meaningful driver” of sales in the next few quarters. UBS also maintained a neutral rating on the stock.

Bullish analysts at Citi this week said the Air may be “laying the groundwork for a foldable phone next year, which we expect could drive a stronger replacement cycle.” Morgan Stanley and others on Wall Street were looking ahead to possible artificial intelligence partnerships and new AI features, including a delayed Siri revamp now widely expected in 2026.

“The most significant Apple Intelligence update is still likely to come in March-June 2026, when we expect a revamped Apple Intelligence, likely powered by a combination of Apple technology, and partner (Google Gemini, OpenAI, or Anthropic) technology,” Morgan Stanley analysts said.

Still, the Morgan Stanley analysts said they remain optimistic on the stock, and would be buyers of any weakness in the wake of the event.