Apple CEO Tim Cook called His company’s recent surge in iPhone sales was “simply stunning” on Thursday. What is behind the successful debut of the iPhone 17 family? Analysts have a few theories.
The company beat Wall Street expectations in the most recent quarter, posting $143.76 billion in total revenue for the period that included a 23% year-over-year increase in sales of its signature smartphone. “It was a fantastic quarter for iPhone with record revenue of $85.3 billion,” Cook said on the call. “This is the most comprehensive iPhone lineup we’ve ever had and, by far, the most popular. Throughout the quarter, customer enthusiasm for iPhone has been nothing short of extraordinary.”
Apple’s strong results don’t necessarily mean customers are done holding on to their old smartphones for years, a trend enabled by technology increased sustainability. Nearly half of iPhone users in the United States now keep their smartphones for three years or more, a study suggests. September report by CIRP, which tracks data on iPhone buyers through customer surveys. That figure was 24% just five years ago, notes analyst Josh Lowitz, partner and co-founder of Consumer Intelligence Research Partners.
Rather, the increase in iPhone revenue in late 2025 likely comes from factors like Apple’s updated pricing strategies and lagging demand from the many customers who Latest iPhones purchased during the Covid-19 pandemicLowitz said.
“Sales were very strong during the pandemic because people weren’t spending on restaurants and travel, and there was a lot of money floating around. Today, pandemic phone buyers have phones that are more than 4 years old,” says Lowitz. These people simply needed upgrades, which helped drive the increased demand, he says.
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Wedbush analyst Dan Ives agrees: “The iPhone 17 was almost a surprise sleeper upgrade cycle,” in part because of “pent-up demand” from about 315 million iPhone users worldwide who hadn’t upgraded their smartphones in more than four years, according to Wedbush estimates.
As for Apple’s pricing strategies, Lowitz notes that