Here's Why You Should Expect Strong Q1 Guidance From Apple

With Apple Inc. AAPL set to release its Q4 report after the market close, eyes will turn to future guidance.

Bank of America is forecasting a much higher iPhone sell target for Apple's Q1, modeling 81 million iPhones in the December quarter, compared to a consensus estimate of 76 million iPhones sold.

Samsung Woes, Carrier Incentives Driving Demand

Analysts are expecting that carrier incentives will drive iPhone sales meaningfully higher in the upcoming quarter. BofA analysts are also expecting a one million-unit gain from Samsung's Note 7 disaster.

Related Link: Samsung's Problems Don't Necessarily Quell Apple Demand Concerns

With iPhone sales supply remaining a concern, it will be important to watch for color from management surrounding supply vs. demand figures on the earnings call.

"As long as iPhone demand remains strong and supply remains constrained, upside could continue into March qtr. China trends will be important as well where we expect modest stabilization," said Bank of America analysts.

Bank of America maintains a Buy rating on Apple with a price target of $125.