Apple did not respond to a request for comment on this story.

Although the projection is not a certainty, it would be a smart move for Apple (AAPL), driving big demand for the new iPhones as the company continues its march toward a $2 trillion market cap.

Ives said he estimates roughly 350 million of the total 950 million iPhones on the market could be upgraded within the next year to 18 months.

since iPhone 6 in 2014 and will be another defining chapter in the Apple growth story looking ahead despite a softer consumer spending environment," Ives said, adding that he believes many on Wall Street are "underestimating the massive pent-up demand around this super cycle for Apple."

Apple's strong earnings in the June quarter indicate it could withstand the pressures of the economic crisis, Morgan said.

Apple last month said that while new iPhones typically go on sale in September, this year the company expects supply "to be available a few weeks later" because of the pandemic.