The Spike In Apple's Component Orders Could Signal It Believes iPhone 7 Sales Will Outperform

According to DigiTimes, Apple reportedly boosted its parts and components order higher by 10 percent. The publication, citing "sources from the iPhone supply chain in Taiwan," suggested the boost in orders "indicates that Apple still remains positive about replacement demand."

Apple has an event scheduled for Wednesday in which it is widely believed an upgraded iPhone device will be announced.

Related Link: Forget The Fed Meeting, September Means It's Time For A New iPhone

Investors have been concerned that the new iPhone will merely be evolutionary rather an revolutionary. As such, consumers would chose to wait until next year, if not later, before upgrading their older iPhone models.

However, DigiTimes' report could ease some of that concern. The report noted Apple may have underestimated demand and originally predicted shipments of the new iPhone in the bottom half of 2016 would reach just 60 percent of iPhone shipments it saw in the same period a year ago.

However, the report also noted that some of Apple's suppliers are "still worried" a boost in orders may be temporary and could "start drifting down" in the fourth quarter on seasonality.

Shares of Apple were trading higher by around 0.30 percent Tuesday morning at $108.08.

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