Apple Set to Boost iPhone 17 Pro Production Amid Strong Demand, Fewer Takers for iPhone Air

Apple is preparing to ramp up production of its iPhone 17 Pro models as early demand proves stronger than initially forecast, even as its more affordable iPhone Air has failed to gain traction.

According to a note from Morgan Stanley (via AppleInsider), Apple is expected to increase its iPhone 17 production order for 2025 from the earlier estimate of 84–86 million units to the low 90 million range. The investment bank, which had cut its price target on Apple stock to $252 in March over fears of a weak upgrade cycle, has now raised it to $298, citing stronger-than-expected demand.

The shift in production is expected to centre around the iPhone 17 Pro and Pro Max models, which have seen higher uptake, offsetting weaker-than-expected demand for the iPhone Air. Analysts said that while overall iPhone 17 sales represent only a modest upgrade cycle, the early data shows resilience, driven largely by owners of older iPhones finally making the switch.

This upgrade momentum, Morgan Stanley argues, sets the stage for an even stronger cycle next year with the iPhone 18. It forecasts that six models will debut in 2026, including the iPhone 18e, iPhone Air, iPhone Fold, and the usual Pro and Pro Max variants. The iPhone Fold is expected to be a particular draw, potentially lifting Apple’s shipments to 243 million units in 2026. In a bullish scenario, contingent on demand for the foldable device and Apple Intelligence features, shipments could climb as high as 270 million, with Apple’s stock potentially reaching $376.

The latest analysis also comes against the backdrop of Apple’s successful navigation of tariff concerns and its decision to retain Google as a key partner. While the iPhone 17 cycle has been more modest than the company’s peak years, the early signs of Pro model demand highlight Apple’s continued ability to extract growth from its premium line, while balancing challenges in expanding its mid-tier offerings like the Air.

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