Analyst: Apple's Streak Of Declining iPhone Sales In Consecutive Quarters Has Ended

Apple Inc. (NASDAQ: AAPL) streak of reporting declining iPhone sales will end at three, at least according to Maxim Group's Nehal Chokshi.

Apple is scheduled to report its fiscal first-quarter results after Tuesday's market close and the company now faces easier year-over-year comps.

Speaking as a guest on CNBC's "Squawk Box" segment on Tuesday, Chokshi stated his proprietary checks suggest that the iPhone saw positive inflection in China and India during the quarter but the domestic market will show a decline in sales. However, the domestic woes will be "overpowered" by gains in the two emerging markets.

Streak Ends At 3

The analyst continued that the key concern in the earnings report will actually be what does the March guidance imply as it will partially answer the question if Apple can sustain a year-over-year growth in iPhone sale — something the analyst is hopeful for.

Chokshi further argued that based on some of the companies within Apple's supply chain, iPhone 7 sales to date have fallen short of his expectations. On the other hand, the analyst believes that the iPhone 7-Plus has a longer lead time when compared to the iPhone 7, which will create an overall favorable average selling price for Apple relative to expectations.

Peering Ahead

Looking forward to the iPhone 8 release, the analyst expects the yet to be released phone will generate at least two years of sustainable year-over-year growth. This also supports the bullish case for Apple's stock as it marks a welcome change from the repeating cycle of one good year followed by a poor year.