'Apple Doing So Well With The iPhone 6 Cycle:' Why Q2 Smartphone Sales Will Be Lower Than Q1

Analysts at Canaccord Genuity recently published a report that highlighted how Apple Inc. AAPL made 92 percent of all the profits in the smartphone industry in the first quarter of 2015 while being responsible for only 20 percent of the sales.

Mike Walkley, Canaccord Genuity analyst, was on CNBC Monday to discuss the report and share his outlook for Apple's stock.

iPhone 6 Upgrade Cycle

"We have done this report for about 10 years now, and its always been the companies that dominate the high-end of the market that've had the lion share of the profit pulls of the industry," Walkley said. "And clearly, with Apple doing so well with its iPhone 6 upgrade cycle, their share of profits are hitting record highs at 93 percent in the December quarter and holding pretty steady at 92 percent of industry profits in the March quarter."

Related Link: Why Apple Must Sell 1 Apple Watch For Every 20 iPhones

Apple Is Crushing Android

Walkley was asked for his outlook on Apple's stock. He replied, "We have a Buy rating with a $160 price target, and one thing from our surveys that we think is quite interesting with this iPhone 6 upgrade cycle is, we have seen Apple really taking high-end Android share with this product cycle.

"In fact, we believe it's the first time Q2 global handset sales will be below Q1 levels for the global industry, and a lot of that's due to Apple doing so well with the iPhone 6 cycle taking wallet share away from these new high-end Android phones that just launched, like the Galaxy S6," Walkley concluded.