In a report published Monday, Bernstein analysts maintained their Buy rating on Apple Inc. AAPL as well as the $142 price target. The iPhone has been witnessing acceleration in growth ever since the launch of the iPhone 6.
According to the analysts, the key question regarding iPhone's recent strength is "whether this is result of an accelerated replacement cycle among existing iPhone users or due to increased first time iPhone buyers (switchers or new smartphone users)."
Related Link: Goldman Sachs On Apple Pay: 4 Things to Know
The report by Bernstein suggests that the gains by iPhone during Q2 were largely driven by a surge in first time iPhone users, with new users accounting for 48 percent of the iPhone sales for the quarter.
However, despite the strength in new users for Q2, the year-to-date figures imply only about 33 percent new users, which points to an overall acceleration in the replacement cycle.
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