Morgan Stanley Predicts Apple iPhone 17 Pro Won’t Offer 128 GB Storage Option; iPhone 17 Air Expected to Start at $999

This article does not constitute investment advice. The author does not hold any shares in the stocks referenced.

Anticipation Builds for Apple’s iPhone 17 Release

As the annual launch of Apple’s iPhone approaches, analysts on Wall Street are preparing to navigate through a sea of reports and speculations from Apple’s extensive supply chain. This year, excitement is heightened as the iPhone 17 lineup is set to be revealed alongside other Apple products like the Apple Watch Series 11, Ultra 3, SE 3, and AirPods Pro 3.

Key Insights from Morgan Stanley’s Analysis

In a recent report, Erik Woodring from Morgan Stanley highlighted that the iPhone 17 Air is expected to be the centerpiece of the launch event. This model is rumored to showcase a sleek, ultra-thin design with a single rear camera, powered by Apple’s proprietary C1 modem.

Forecasting Pricing and Growth Trends

Woodring anticipates a 5% increase in the average selling price (ASP) for Apple’s iPhones by 2026. He projects this growth to stem from a few key changes: the introduction of a higher storage option for the iPhone 17 Pro, specifically a 256 GB variant, and the iPhone Air launching at a $100 premium compared to last year’s iPhone 16 Plus model.

“Our model embeds elimination of the 128GB storage WeU for the iPhone 17 Pro and a $100 Y/Y increase to Air model.”

For context, the previous iPhone 16 Plus was priced at $899. Hence, it is likely that this year’s iPhone 17 Air, which will replace the Plus variant, will debut at approximately $999 according to Morgan Stanley’s evaluation.

Contrasting Market Predictions

Interestingly, Morgan Stanley’s forecast diverges significantly from the prevailing opinions on Wall Street, which are currently anticipating flat unit sales and a modest 1% growth in ASP.

Additional insights from JP Morgan echo some of Morgan Stanley’s sentiments, projecting the removal of the 128 GB storage option for the iPhone Pro and a corresponding $100 price hike, although they estimate the iPhone 17 Air’s price to be either $899 or $949.

Conclusion

With a blend of innovative designs and strategic pricing, Apple’s next launch could reshape expectations for its flagship products. As enthusiasts, analysts, and investors await the unveiling, it will be crucial to watch how these forecasts materialize in the marketplace.

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