Apple, Inc. (AAPL) stock traded modestly lower in Tuesday’s early premarket session as investors look ahead to the company’s ‘Awe Dropping’ iPhone 17 launch event, scheduled for 1 p.m. ET.

Previewing the event in a note released late Monday, Wedbush analyst Daniel Ives said he expects the company to potentially raise prices on the two high-end models — the Pro/Pro Max — by $50 to $100.  The analyst noted that a majority of the company’s U.S.-bound iPhones are now made in India rather than in China on account of which he expects a $1 billion headwind in the September quarter. 

Aligning with the word on the Street, Ives also braced for a new iPhone model, dubbed the iPhone 17 Air, which would replace the iPhone Plus variant. This, according to the analyst, will be the thinnest iPhone to date and cost $100 more than the base iPhone.

Following the thawing of tensions between Apple and the Trump administration, as the company committed to a $100 billion incremental investment last month, an overhang on Apple stock has been lifted, Ives said.

The analyst opined that all the focus is now on Apple’s artificial intelligence (AI) strategy for the iPhone 17 & beyond. 

Ives also flagged a big user upgrade opportunity for Apple. “We estimate roughly 315 million iPhone users of 1.5 billion users worldwide have not upgraded their phones in over 4 years,” he said, adding that China would be the front and center.

Will iPhone launch spur a stock rally? Find Out

The analyst sees the following configuration/features for Apple’s newest iPhones, dubbed the iPhone 17:

• New and improved camera across all four models
• AI-powered battery optimization in iOS 26
• Larger battery capacity/significantly longer battery life to support up to 25W charging
• Pro/Pro Max models with a reverse wireless charging feature that allows them to charge AirPods/Watch wirelessly
• Upgraded A19 chips across models
• iPhone 17 Air featuring a 120Hz ProMotion display and a C15H model

Ives sees the iPhone 17 Air having “significant” demand, as it is the first notable redesign to the iPhone lineup in years.

Click here to find out expected prices for the iPhone 17 lineup.

Wedbush has an “Outperform” rating and a $270 price target for the stock.

In a post on X, Bloomberg columnist Mark Gurman said he expects the new heat management system/vapor chamber on the iPhone 17 Pro and Pro Max to be a key point. “That, of course, in addition to the external design changes, new orange and blue colors, and major camera upgrades (48MP across lenses, improved optical zoom),” he added.

Retail users on Stocktwits held onto the ‘bullish’ sentiment (66/100) toward the Apple stock ahead of the event, with the message volume perking up to ‘high’ levels.’

Apple stock is down about 4.7% this year.

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