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Apple asks suppliers to ramp up iPhone 17 production after strong demand

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Apple has instructed suppliers to increase production of the entry-level iPhone 17 by at least 30%, after stronger-than-expected pre-orders last weekend, according to The Information. The move indicates that more consumers are opting for the $799 standard model over the premium Pro versions, which start at $1,099.

Apple reportedly asked Luxshare Precision, one of its two main Chinese assemblers alongside Foxconn, to boost daily output of the iPhone 17 by about 40%. The company has not commented on the report.

The surge in demand for the lower-cost iPhone comes as Apple seeks to revive growth in its flagship product line. The new lineup includes the thinner iPhone Air, part of Apple’s effort to lure buyers in a sluggish upgrade cycle. Notably, the iPhone 17 incorporates screen and camera upgrades once exclusive to the Pro models, narrowing the performance gap with higher-priced versions.

Analysts say the trend highlights growing price sensitivity among consumers, particularly in China and other key markets. While strong sales of the entry model may help Apple protect its market share, they could also pressure profit margins, as buyers shift away from Apple’s traditionally higher-margin Pro devices.

Shopify Raises Revenue Outlook on Strong Consumer Demand, Shares Jump 20%

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Shopify (SHOP.TO) forecasted upbeat quarterly revenue on Wednesday, citing resilient consumer demand and strong seller performance despite tariff pressures. The Canadian e-commerce platform’s shares surged 20% following the announcement.

Shopify’s merchant base showed steady growth through early August, building on a 31% revenue jump in the April-June quarter. The company’s results helped ease investor concerns over uncertainty caused by shifting U.S. trade policies under President Donald Trump.

“We haven’t seen any drops in U.S. demand, whether inbound, outbound or local. In fact, the U.S. accelerated in the second-quarter,” CFO Jeff Hoffmeister said on the post-earnings call, noting strong growth across all merchant segments. High-volume sellers with more than $50 million in annual gross merchandise volume (GMV), as well as smaller sellers under $2 million, performed particularly well.

Shopify also reported that many merchants have been raising prices, although specific details were not disclosed. This contrasts with e-commerce giant Amazon’s recent statement that it has yet to see a notable rise in prices despite strong retail results.

Analyst Charlie Miner of Third Bridge commented, “The tariff situation is still playing out… but there is clarity on how consumers will react, and Shopify appears largely unaffected so far.”

Looking ahead, Shopify expects third-quarter revenue growth in the mid- to high-twenties percentage range, above analysts’ consensus estimate of 21.54%, based on data from LSEG.

The company’s investments in artificial intelligence-powered tools to help merchants automate tasks such as website building, image generation, and sales data analysis are contributing to its momentum.

EA Shares Climb on Strong Forecast, ‘Battlefield’ Launch Amid GTA VI Delay

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Electronic Arts (EA.O) saw its shares rise over 2% on Wednesday, as investors responded positively to the company’s upbeat fiscal 2026 forecast and the upcoming launch of its major title “Battlefield”, which could benefit from a market gap left by the delayed release of “GTA VI” by rival Take-Two Interactive.

EA expects fiscal 2026 bookings to range between $7.60 billion and $8 billion, exceeding Wall Street’s consensus of $7.62 billion (LSEG). The results signal renewed momentum for the gaming giant, especially in its flagship sports franchises like “FC” and “Madden NFL.”

“The rebound in FC, continued success of American Football and upcoming Battlefield launch all give us confidence in a more sustainable top and bottom line story,” Jefferies analysts noted.

Key Drivers of the Rally:

  • Double-digit monetization growth for “FC” since a January update, easing fears of a slowdown after its rebranding from “FIFA.”

  • Launch of a new “Battlefield” title in fiscal 2026, which could capture attention while GTA VI is postponed beyond that period.

  • Analysts view the delay of GTA VI as a “window of opportunity” for EA to dominate AAA-title sales next year.

The positive sentiment led at least 10 brokerages to raise their price targets, bringing the median estimate to $158 per share. Despite the rally, EA stock is up just 5.6% year-to-date, trailing Take-Two’s 26% gain.

From a valuation perspective:

  • EA trades at ~19.96x forward earnings

  • Take-Two trades at a significantly higher ~31.47x, underscoring investor appetite for its blockbuster GTA franchise

With U.S. tariffs contributing to macroeconomic pressure on consumer spending, EA’s forecast is being interpreted as a sign that demand for premium gaming experiences remains resilient.