Apple Reveal: Fireworks not included
Apple’s September showcase was light on fireworks but there were a couple of sparklers in the box.
The biggest twist was not a new gadget but a quiet reshaping of prices. By scrapping the 128 GB storage tier, Apple has effectively nudged buyers into spending more. The iPhone 17 Pro and new iPhone 17 Air now start $100 higher than their predecessors, while the Pro Max tops out with a 2 TB version carrying a $1,999 sticker.
The base iPhone 17 still begins at $799, a crucial move to keep the mass market within reach. It is bigger, with a 6.3-inch display, carries a sharper 18-megapixel front camera and runs on the new A19 chip. The formula is familiar: incremental improvements that make upgrades tempting, with a pricing ladder that encourages customers to climb.
The rest of the line-up also had a polish. The Apple Watch Series 11 and Ultra 3 add battery life and health features such as blood pressure and sleep monitoring. The cheaper SE 3 gains Apple’s newer chip and an Always On display. AirPods Pro 3 arrive with better noise cancellation, a more secure fit and live translation across five languages at launch.
US carriers are doing their bit too. Trade-in deals have become even more generous, with credits of up to $1,100 available. That cushions consumers from the higher official prices. Pre-orders opened on 12 September and shipping begins on the 19th across more than 60 markets.
Goldman Sachs believes these shifts will keep Apple’s growth story intact. It expects revenue to rise from $391 billion in fiscal 2024 to $480 billion in 2027, with earnings per share moving from $6.75 to $9.04. Services remain the key driver, marking what the bank calls an inflection point as Apple becomes more of a recurring-revenue machine.
The broker keeps a Buy recommendation with a $266 target, around 13.5% above the current $234.35. The risks are familiar. Customers are holding on to devices for longer, consumer demand is patchy, supply chains still rely heavily on China and regulators are circling the App Store and payment systems.
Even so, Goldman argues that Apple’s ecosystem is uniquely sticky. With more than a billion active iPhones already in circulation, each new feature increases loyalty and makes switching harder. That gives investors unusually strong visibility on revenue and earnings.
The conclusion is clear. Apple remains Apple, steadily nudging customers up the price ladder while laying deeper foundations in services. For Goldman, that combination justifies a premium rating. For investors, the question is whether to back the bank’s optimism or wait for a cheaper entry point.
