Analyst: forget an ‘iPhone 8,’ next year’s ‘iPhone 10’ will be a massive hit

In a note to clients — as noted by Business Insider — Cowen Group analyst Timothy Arcuri says his team believes iPhone sales are set to explode when Apple introduces the successor to the iPhone 7, which they believe will be called “iPhone 10.”

“iPhone 7 is proving an effective ‘bridge’ to the iPhone 10 super-cycle in ’17, where a powder keg of a dramatically aging installed base lurks just under the surface such that C17 Street revs/EPS are 10%+ too low. Raise target to $135, which even still seems too low,” he says.

Arcuri’s theory is that, over the next few quarters, 43% of iPhone users will be using a device older than two years and will be ready for an upgrade. He posits thata weakness in sales for iPhone 7 [said “weakness” being questionable in my opinion] will actually end up helping next year’s new smartphone, which is expected to feature “dramatically improved features and functions.”