In a note to investors — as noted by CNBC — USB said it believes the upcoming “iPhone 8” (shown in a fanciful mock-up) has the potential for huge sales because of expected upgrades from phones sold in fiscal 2015.
The Swiss bank also suggested Apple's earning report on Aug. 1 will provide a hint to the new iPhone's release date. UBS said it expects to see a surge of iPhone 6 owners upgrade next year, with the potential to make it a sales "supercycle."
"We expect a bulge of buying in F18 [fiscal 2018] followed by some growth in F19," UBS analyst Steven Milunovich said in the note. "As the iPhone matures, investors should start to better appreciate the size of the installed base, which promotes hardware and services gains."