“It’s amazing what one quarter of outperformance can do for the outlook of a company like Apple,” Tony Owusu reports for TheStreet. “Skies are bluer, grass is greener, and more iPhones will be sold in fiscal 2017 and 2018, according to analysts at UBS.”

“Analysts at the firm raised their fiscal 2017 iPhone sales estimates 5% — to 222 million units from 205 million units sold — while also raising their 2018 expectations 18% — to 264 million units from previous expectations of 240 million unit,” Owusu reports. “‘Our model shows that an iPhone unit decline in F17 probably requires less than 40% of the F15 base to upgrade in two years,’ said analyst Steven Milunovich. ‘This would be a significant lengthening of the upgrade cycle, since we estimate that 50% to 60% of each prior class upgrades in two years. Even estimating that only 41% of the F15 base upgrades in F17 yields upgrade unit growth of 17% next year. The worse F17 is, the better F18 iPhone sales will be, assuming retention rates remain high.'”

Owusu reports, “Milunovich’s raised expectations are contrary to current market talk, as iPhone growth prospects have been heavily scrutinized amid flagging sales and lowered guidance from an array of suppliers.”

Read more in the full article here.

MacDailyNews Take: Skies are bluer, grass is greener, and…

AAPL is like a buoy. Quick, it’s back on the surface! You there, analyst, and you, too, swim down and tug on the chain! Drag it under… lower, lower… Good! Now, quick, everybody jump on, and we’ll take a ride back up to the top again!MacDailyNews Take, January 9, 2012

As we wrote in April 2012:

At the most basic level, it’s extremely simple: Pump, then dump. Foment, then buy. Rinse, lather, repeat as the SEC sleeps.