Apple Inc. (NASDAQ:AAPL) shares finally split seven for one, and the new shares started trading on Monday. Analysts Sherri Scribner and Joakim Mahlberg at Deutsche Bank have already adjusted their models to reflect the change. In a report issued on June 10, 2014, the Deutsche Bank analysts raised their iPhone estimates and expect demand to rise in second half of the 2014 fiscal year.

Apple AAPL Stock

The DB analysts believe “shares will continue to trade higher into C2H-14 as we expect new product introductions to drive upside to expectations.”

Apple iPhone 6 to drive sales

Factors such as increasing demand in emerging markets and continued momentum with new carriers such as China Mobile will take Apple Inc. (NASDAQ:AAPL) iPhone sales forward. The report makes iPhone units’ sales estimates of 35.85 million for the third quarter of 2014, which is a decline of 18% quarter over quarter owing to a pause ahead of the launch of new iPhone.

Historically, Apple Inc. (NASDAQ:AAPL) iPhone units sales declined 14% on average in the quarter before a new product is launched. However, over the past three occasions the decline has been steeper, the analysts note. The analysts also raised their full year expectation for unit shipments by 13%, which can be marked as conservative in the context of IDC’s estimates of overall smartphone shipment growth of 23% in 2014.

Apple Inc. (NASDAQ:AAPL) is expected to launch a new iPhone this fall in September, which will most likely be a larger display phone at a higher average selling price. The larger display phone segment is witnessing robust growth unlike the 4” and below, which sould work in favor of a large screen iPhone. Analysts have not included any wearables in their model, and believe any new product category will drive the growth further.

The Deutsche Bank analysts “see additional upside to the shares” and maintain a Buy rating on Apple with a price target of $105.

UBS analyst also positive

A few days back, analyst Steve Milunovich at UBS raised Apple’s split adjusted earnings per share by 5% to $7.22 for fiscal 2015 and 3% to $8.15 for fiscal 2016. Factors that contributed to the EPS adjustment were increasing contributions from the iPhone 6, iWatch and iPad shipments. Milunovich is hoping that Apple Inc. (NASDAQ:AAPL) iWatch sales will be more or less similar to the growth of iPad.