Apple (AAPL) stock climbed about 1% Wednesday before the market open following an upgrade from analysts at Jefferies, who raised their rating to Hold from Underperform previously.

Citing Counterpoint Research, Jefferies analyst Edison Lee said global iPhone sales rose 15% in April and May from the prior year, the strongest growth since the third quarter of 2021. Lee estimated that iPhone sales in China grew 19% in that period, partly due to targeted discounts and government subsidies as well as “pulled-in demand,” or Chinese consumers buying phones ahead of anticipated tariffs.

“This is a strong sign that AAPL is determined to defend market share in China, and Chinese consumers are still willing to buy iPhone at lower prices,” Lee wrote.

But he also said the release of the iPhone 17 in the second half of 2025 may not provide the boost Apple needs. Lee wrote that “sales could be at risk since there remains a lack of new features, and AI is not yet a game changer.”

Apple shares jumped 1.3% Tuesday following a report from Bloomberg that the iPhone maker is considering using AI technology from startups Anthropic (ANTH.PVT) or OpenAI (OPAI.PVT) to power a new version of Siri.

Still, the stock was down 17% for the 12 months through Tuesday.