What happened

Shares of Apple (AAPL -0.41%) climbed higher Wednesday, adding as much as 2.1%. As of 1:14 p.m. ET, the stock was still up 1%.

Strong presale data for the iPhone 14 no doubt boosted the stock, but not everyone is convinced. One Wall Street analyst is suggesting that the tech giant's iPhone revenue will actually be lower in fiscal 2023, curtailing the stock's gains.

So what

Apple investors have been flooded with reports of strong iPhone 14 presales, which have historically been a good indicator of continuing consumer demand for the device. Earlier this week, numerous analysts read the digital tea leaves and concluded that strong pre-order data suggests resilient demand for the iPhone, even in the face of macroeconomic headwinds.

Just yesterday, Evercore ISI analyst Amit Daryanani was the latest to jump on the bandwagon, suggesting that longer lead times pointed to robust demand for the latest version of Apple's flagship device, according to The Fly. He was particularly bullish regarding strong user interest in the iPhone 14 Pro, Pro Max, and Plus, the higher-priced models. 

But not everyone is convinced. Bernstein analyst Toni Sacconaghi is generally more cautious about Apple's prospects. The analyst suggested iPhone revenue could fall between 3% and 4% next year, a far cry from analysts' consensus estimates, which are calling for an increase of 2%. Sacconaghi worries that after two years of strong sales, upgrade adoption will slow and the remaining buyers will opt for lower-priced devices. It's worth noting that the analyst has a market perform (hold) rating and a price target of $170, which still suggests gains of 11% for investors over the coming year.  

Now what

It's important to remember that this is mostly just "fun with numbers." No one knows for sure how many iPhones Apple will sell in a given year or what the product mix will be.

That said, Apple reached an important new milestone in the second quarter, with the iPhone accounting for more than 50% of all smartphones used in the U.S., overtaking Alphabet's Android for the first time. 

Given its increasing share, continuing strong demand, and dominance of the high-end smartphone market, Apple stock remains a buy.