Apple's iPhone 17 series has experienced a strong start, with early sales in China and the US surpassing those of the previous iPhone 16 by 14% in the first 10 days, driven by notable hardware upgrades.

The iPhone 17 offers significant improvements such as a better chip, enhanced display, increased storage, and a new selfie camera, all at the same price as last year, which has resonated well with consumers.

Demand for the standard iPhone 17 has surged, nearly doubling last year's sales in China during the same period, thanks to these core hardware enhancements.

Despite challenges in AI development, Apple continues to generate about half of its revenue from iPhone sales, with Chinese consumers awaiting the launch of Apple Intelligence.

Market data shows that in the premium segment, sales increased by 8% in the first half of 2025, with AI playing a minor role in growth, as consumers prioritize product quality and performance.

Apple's focus on improving core features rather than emphasizing AI has proved more effective, reaffirming that competition still centers on display, camera, and chip performance.

The iPhone 17 Pro Max, especially popular in the US, features a top-tier camera, improved cooling, and a redesigned physical appearance, attracting users who haven't upgraded since the pandemic.

Apple's internal management shifts include potential increases in AI responsibilities for key executives, amid ongoing recruitment efforts to fill leadership gaps in AI.

Despite initial skepticism about Apple's AI lag, the company's hardware success demonstrates that consumers value reliable performance over superficial AI features.

Apple's stock has gained 1% this year, supported by recent sales momentum, as the company prepares to report its fiscal fourth-quarter results after October 23.

The strong early demand for the iPhone 17 is crucial, given that nearly half of Apple's revenue in the June 2025 quarter came from iPhone sales, with the upcoming December quarter being pivotal.

While Apple tests iOS 26.4 to improve Siri, early feedback indicates ongoing issues, and top AI executives are experiencing role reductions amid management changes.