Part of the report reads:

"Recent... third party data suggests the recent price cut to the XR model and newly launched 11 are seeing healthy demand," says the investor note. "Continued expansion in the iPhone trade-in program and 0% financing options are also expected to play a part in improving affordability.

"We think gaming driven revenues in China are likely now normalized after the catchup in game approvals earlier in the year and could be seasonally up," it continues. "We expect AppleCare (correlated with new device units) to be seasonally up in the Sep Q, Apple Music to be up seasonally."

It's interesting to see AppleCare subscriptions count for so much, but it shows not only that people want to protect their iPhones from damage, but also that it is a canny move that Apple has taken the insurance profit in house.

Most other phone makers don’t offer such an easy way to repair their phones post-purchase compared to the blanket coverage of buying AppleCare. It’s convenient for the customer and high margin for Apple.

Cowen predicts too that Apple will product 69 million iPhones in the quarter alone to fulfil the holiday demand. Apple also has the 1 November launch of Apple TV+ to look forward to as it encourages its customers to pay £4.99 / $4.99 per month for its streaming service of original TV content.

Looking firther ahead, Cowen couldn’t resist adding that “We do also believe Intel could remain in the supply chain as a supplier of 4G modems for the potential low-cost iPhone SE2 model in the first half of 2020.”

The iPhone SE 2 probably won’t be called that, but the low cost iPhone with the internals of an iPhone 11 and the body of an iPhone 8 has been all but confirmed by recent leaks