NEW YORK (TheStreet) -- Shares of Apple Inc (AAPL) were moving higher by 0.91% to $131.24 in late morning trading Thursday, after analysts at Morgan Stanley revised their iPhone and Apple Watch estimates this morning.
Analysts at the firm said their checks indicate June quarter iPhone demand is tracking ahead of Wall Street expectations, and Watch demand has risen following the launch.
For the Apple Watch, Morgan Stanley raised its base case estimate to 36 million units from 30 million units in the first 12 months.
The firm raised its June quarter iPhone unit estimate to 50 million from 46 million. It also upped its fiscal 2015 unit estimate to 240 million, and its fiscal year 2016 unit estimate to 249 million.
Morgan Stanley reiterated its "overweight" rating with a $166 price target on Apple shares.
In addition, Cantor Fitzgerald analyst Brian White said the strong Apple iPhone demand can largely be attributed to China, where 3G and 4G smartphone subscribers increased by 39% compared to a year ago.
Earlier this week, billionaire investor Carl Icahn said Apple remains dramatically undervalued, and is worth almost double the current price, according to CNBC.
In a letter to Apple CEO Tim Cook, Icahn wrote that he values Apple shares at $240. Icahn also called for accelerated buybacks, CNBC added.
The investor said his team believes that Apple is poised to enter and "dominate" two new product categories, television and automobile, CNBC reported.
Apple designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, as well as a variety of related software, services, peripherals, networking solutions, and applications.