Apple’s HomePod and Apple Watch are in demand, analysts contend …

Interest in Apple Inc.’s newest products, including a HomePod intelligent speaker, appears to be picking up, that could assistance a association benefit a rival advantage over Amazon Inc. in a sector.

According to a Raymond James consult of 500 consumers in June, about 14% of iPhone owners intend to buy Apple’s

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  HomePod, which, total with those who intend to buy a Beats wireless speaker, surpasses a direct for a Amazon

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  Echo. There is also high direct for a Apple Watch and AirPods, Apple’s wireless headphones, that could minister some-more to a company’s bottom line as iPhone sales flatten.

Apple denounced a HomePod during a developer discussion in June, yet consumers won’t be means to buy it until December. The HomePod is identical in duty to Amazon’s Echo — yet it’s billed as some-more of a intelligent orator rather than a intelligent partner — yet comes in during a aloft cost of $349 vs. $180 for a Echo.

See also: Apple bets that you’ll adopt these 3 tech habits

The news showed that 19% of consumers surveyed intend to squeeze an Apple speaker, that includes iPhone users who intend to buy a Beats wireless speaker. That figure beats a 16% of consumers who intend to buy an Amazon Echo, or a associated product such as a Tap or Dot. It also helps Apple transcend Bose, that had 18% of iPhone owners intending to buy a Bluetooth speaker.

Demand is also augmenting for a Apple Watch, with a 12% of consumers indicating they would buy a watch, a top turn a analysts have seen so far. It approaches direct for Fitbit Inc.

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 , that was during 12%. And while a analysts do not have numbers on AirPods, they contend a direct has been larger than a supply for 6 months.

While a difficulty including these 3 products creates adult usually about 5% of Apple’s altogether revenue, a analysts pronounced a association could continue to grow for years in this difficulty due to a vast addressable marketplace in wearables.

“Last quarter, driven by clever y/y trends for Apple Watch and high direct for AirPods, a difficulty grew 31% y/y, and we think identical expansion is approaching a subsequent several quarters,” Tavis McCourt, a lead researcher on a report, wrote in a note.

This might be critical as Apple has seen flattening income and declines in a series of iPhones sold. At a Jun developer conference, Apple also done a pull into protracted existence with a vigilant of being a personality in a space and eventually gaining some-more immature consumers.

Apple has also been saying gains in a program and services revenue, done adult of iTunes, a Apple Store, iCloud, Apple Care and Apple Pay, and it was one of a few segments to grow in 2016. The Raymond James analysts design to grow about 20% year-over-year when Apple reports a second-quarter gain after this month.

Still, while watchful for a new iPhone cycle, analysts pronounced they design year-over-year iPhone sales to be “flattish” for a second quarter.

Consumers seem to be watchful for a approaching iPhone 7s or iPhone with an OLED screen, both rumored to come in a fall, as a analysts’ consumer consult found that an augmenting commission of consumers devise to ascent in a subsequent 12 months, yet not within a subsequent 3 months.

Other analysts have pronounced they design a approaching launch of Apple’s iPhone 8 in Sep to trigger a “super cycle,” in that consumers ascent to a new phones heading to a record 2018 of iPhone sales.

The Raymond James analysts pronounced they design a iPhone 7s to have an on-time launch, while a OLED phones might be delayed. They design iPhone units sales of 40 million for Jun and 45 million for September. The FactSet accord is for 41 million units in Jun and 47 million in September.

They confirmed their outperform rating and $163 cost target. The normal rating on FactSet is overweight with a $161.63 cost target.

Shares of Apple have depressed 7.5% in a past month, compared with a SP 500’s

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  detriment of 0.5%.

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