“I believe Apple is setting itself up for a Q2’17 blowout,” Alex Cho writes for Seeking Alpha. “Now, I know many of the other analysts are downplaying the importance of the next quarterly earnings report, as many point to the iPhone 8 cycle as the main catalyst by which investors are bidding the shares. But I think it’s worth focusing on the next 3 months before we build any anticipation for the iPhone 8.”

“I believe Apple’s outlook was a little too conservative,” Cho writes. “There may be upside of perhaps 3-5 million iPhone units, assuming Chinese consumers regain some ground, currency headwinds are offset by a dollar inversion trade, and channel inventory gets so lean that Apple ramps production to meet its 5-6-week channel inventory objective.”

“As such, I’m estimating that next quarter revenue will be above the high end of outlook, and roughly $3.7 billion above consensus estimates of $53 billion,” Cho writes. “Therefore, Q2’17 seems like a set-up for another blowout quarter.”

Read more in the full article here.

MacDailyNews Take: From your lips, Alex, to Mr. Market’s ears!