Apple’s new iPhone 17 series has kicked off with strong early sales in China and the U.S.—its two key markets—outperforming the iPhone 16 lineup, according to a Monday report from research firm Counterpoint.

In the first 10 days after its launch in the two markets, iPhone 17 sales rose 14% compared to the iPhone 16 series, the report noted. Notably, the base model of the iPhone 17 saw nearly doubled sales in China versus the iPhone 16 base model, with an average sales growth of 31% across both markets.

Mengmeng Zhang, a senior analyst at Counterpoint, highlighted in the report that the iPhone 17 base model has strong appeal to consumers, as it boasts upgrades including a better chip, improved display, higher base storage capacity, and an enhanced front-facing camera—all at the same price as last year’s iPhone 16.

A separate report from Deepwater echoed this positive momentum, stating the iPhone 17 has driven Apple’s strongest sales momentum since the COVID-19 pandemic. The wait time for the new iPhone has lengthened by 13% compared to last year, a sign of robust market demand.

Key Driver of Turnaround Amid Mixed Model Performance

While the iPhone 17 series’ high cost-effectiveness has attracted a large number of consumers, its ultra-thin variant—the iPhone 17 Air—has reportedly underperformed, prompting Apple to adjust production plans to cut output of this model.

A report from Mizuho Securities Japan last week revealed that due to weaker-than-expected market performance, Apple has decided to reduce iPhone 17 Air production by 1 million units, while ramping up production of other iPhone 17 models. Following this adjustment, the total shipment forecast for the iPhone 17 series has been raised from 88 million units to 94 million units, with production expected to be completed by early 2026.

Supply chain sources also indicated that Apple has notified component suppliers to adjust production quotas, prioritizing component supplies for the iPhone 17 base model and Pro variants. The production capacity originally reserved for the iPhone 17 Air may either be reallocated to other models or reserved for next-generation product technologies.

Analysts currently project that Apple’s smartphone revenue will grow 4% to $209.3 billion in the latest fiscal year, and further increase by 5% to $218.9 billion in fiscal 2026.

Apple is set to release its fiscal fourth-quarter earnings report next Thursday, which will include details on the iPhone 17 series’ early sales. Smartphones still account for more than half of Apple’s annual revenue, so strong iPhone sales will help ease market concerns about the company—particularly as Apple’s stock has underperformed other tech giants this year, partly due to its perceived lag in the artificial intelligence (AI) space.