Apple's iPhone Air doesn't look like a best-seller. It might not matter.

Core Insights - Apple is experiencing challenges with the sales of its new iPhone Air model, which has not met initial expectations despite overall iPhone sales increasing, particularly for the entry-level iPhone 17 and Pro models [2][3][9] - Analysts are closely monitoring Apple's upcoming earnings report for official sales figures of the iPhone 17, which could indicate whether the company is entering a "super-cycle" of growth after a peak in fiscal 2022 [4][5] - The iPhone Air, priced at $999, is positioned between the iPhone 17 and iPhone 17 Pro, but its sales have been underwhelming compared to its predecessors, leading to reduced component orders [7][9][12] Sales Performance - The iPhone 17 has shown strong sales, attributed to its advanced features like a faster chip and improved battery life, while the iPhone Air's performance has been lackluster [3][4] - Early sales data through September indicates a positive trend for the iPhone 17, with Wall Street responding favorably to these estimates [5][6] - Reports suggest that Apple has significantly cut component orders for the iPhone Air while increasing orders for other models, indicating a shift in consumer preference [9][12] Market Positioning - The iPhone Air's design is thinner and lighter but comes with compromises such as a single camera lens and shorter battery life, which may not appeal to all consumers [8][10] - Analysts believe that the existing Pro series and standard models effectively meet high-end user demand, leaving limited room for the iPhone Air to capture new market segments [10][14] - The iPhone Air's underperformance is not seen as a major shift for Apple, as the company has historically struggled with its fourth model in the lineup [10][11] Future Outlook - There are expectations that the iPhone Air could serve as a stepping stone towards a more diverse product lineup, potentially including a folding iPhone in the future [13][14] - Analysts predict that Apple will continue to innovate with form factor updates, maintaining smartphone relevance despite the current challenges faced by the iPhone Air [14]