NEW YORK (TheStreet) -- Apple (AAPL) - Get Report no longer has tight forecasts for iPhone demand, Wedgewood Partners CIO David Rolfe said on CNBC's "Squawk on the Street" on Wednesday morning.

His comments come as investors question how Apple gauged demand for its new iPhone 7 and iPhone 7 Plus phones, as the company is having trouble making enough devices to keep up with demand. 

"The days of Apple really getting really tight with their forecasts and gauging demand, those days are over," he claimed. 

When Apple was in the process of rolling out new carriers, then it "obviously had significant insight" on demand then, Rolfe said. 

"But think about where the iPhone franchise is right now," he continued. 

With an installed base of 600 million iPhone users, who upgrade every two to three years, Apple is going to "pencil in" at least 200 million units per year, Rolfe claimed. 

"At 40% gross margins, even 38%, 39% gross margins across an iPhone product line, that's a great business to be in. And as shareholders, we remain very bullish going forward," he said. 

TheStreet's Jim Cramer was right to predict that fiscal 2018 will be a "really big year" for Apple's iPhone, Rolfe said. 

After Tuesday's closing bell, Apple posted its first decline in annual revenue and profits since 2001.

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The tech giant reported earnings of $1.67 per share, topping analysts' expectations of $1.66 per share. Revenue came in at $46.9 billion, which was in line with analysts' estimates.

Shares of Apple were lower in early afternoon trading on Wednesday. 

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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings team rates Apple as a Buy with a ratings score of B+. This is driven by multiple strengths, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.

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