×

Apple may blow past low expectations: Expert

Expectations for Apple have fallen low enough that the tech giant could easily surprise Wall Street when it posts quarterly results later this month, one company watcher said Tuesday.

"The bar has been lowered for this quarter, and we think that's a great setup for Apple to beat expectations," said Channing Smith, managing director of equity strategies at Capital Advisors. "If they don't, the expectations are already low, so we see limited downside."

Apple shares have fallen more than 11 percent in the last three months. Concerns about a possible slowdown in growth market China and tough comparisons to blowout iPhone sales last year have partially fueled the selling.

Apple store
Scott Mlyn | CNBC

Some analysts that cover Apple have cut their sales projections for iPhones, which normally face lofty expectations, Smith said on CNBC's "Power Lunch." He added that margins could also prove strong, which gives Apple another possible catalyst.

Read MoreApple earnings to determine markets' fate?

Many investors have also underestimated the effect of iPhone upgrades, said Dan Ives, managing director and senior analyst at FBR Capital Markets. His firm estimates that less than 30 percent of iPhone users have upgraded to the 6 model, projecting that number could rise to 65 percent by next year.

"That's really the fuel in the tank for Apple here and ultimately turns the bears to bulls," Ives said Tuesday on "Power Lunch."