Looks like Apple is getting a little bit of sunshine despite its forecast of doom and gloom.
Though the tech giant warned in January that first quarter revenue could drop more than eight percent, analyst reports have indicated iPhone demand so far has a leg up on low projections.
According to a report from the Wall Street Journal, Morgan Stanley analyst Katy Huberty said overall demand for the iPhone this quarter has surpassed expectations and could even see an extra boost from Apple’s launch event next week.
On Monday, the company is widely expected to unveil a new four-inch iPhone. The device, which will reportedly be dubbed the “iPhone se,” is anticipated to include a faster processor and features like Apple Pay alongside a lower price tag.
Huberty’s optimism was echoed by UBS analyst Steven Milunovich, who said Apple’s ecosystem has “never been stronger,” the Journal reported.
Additionally, the Journal reported, Huberty said data suggests iPhone sales in China are up sequentially and year-over-year. Apple CEO Tim Cook previously said the company “began to see some signs of economic softness in Greater China” in January.
Huberty said data gathered by Morgan Stanley’s AlphaWise iPhone Tracker through the end of February points to the sale of 56.6 million iPhones in the first quarter. Though that figure is above the 50 million units expected by Wall Street, it’s still well below the 61 million figure Apple hit during the same quarter last year.