10:44 AM EDT, 07/21/2025 (MT Newswires) -- Apple ( AAPL ) is expected to deliver solid fiscal Q3 results on product strength and better-than-feared services growth, Morgan Stanley said in an earnings preview Monday.

Ahead of the release of Apple's ( AAPL ) quarterly results on July 31, Morgan Stanley said its revenue estimate for iPhone is now 2% higher than consensus because of upside from shipments and average selling prices.

Morgan Stanley said it also boosted its estimates for iPad by 9% and Mac by 1% due to stronger-than-expected end demand.

The firm also raised its services forecast by 60 basis points to a year-over-year growth of 11.6% as the App Store's 11.6% growth exceeded its expectations.

"Concerns about services growth deceleration in the June quarter appear overblown," the firm said.

Morgan Stanley maintained the company's overweight rating and $235 price target.

Apple ( AAPL ) shares were up 1.6% in recent trading Monday.

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