iPhone will outperform market expectations, pushing shares of Apple to $185, FBR says

Analyst Daniel H. Ives raised his estimates for Apple's just-concluded June quarter, in which he believes the company shipped 49 million iPhones, though he said the 50 million barrier is "within reach." A copy of Ives's latest estimates were provided to AppleInsider.

He believes Apple's revenue for the quarter was $49.2 billion, with earnings per share at $1.79. Those are increases from his previous estimates of $47.8 billion in revenue and $1.72 EPS.

FBR's new, higher estimates come as the firm has also reiterated its "outperform" rating for AAPL stock. With continued iPhone growth, Ives believes shares of the company will reach $185 within the next year.

With a week to go before Apple reveals the results of the June quarter, shares of the company are down about 5 percent since it reported its March earnings. But to Ives, those recent losses are a mere "speed bump" on the way to future continued growth.

"Ultimately we see more legs to the iPhone 6 product cycle than the Street is anticipating for the next few quarters, with China (despite recent macro headwinds) as a major driver of top-line growth, coupled by new products (Watch, Apple Pay, streaming) starting to pave the way for future avenues of consumer penetration," Ives wrote.

With new products on the horizon, most notably an anticipated iPhone refresh in September, he believes Apple is positioned strongly heading into its 2016 fiscal year.