Apple Inc. is set to report third-quarter earnings after the market close on Tuesday.

The third quarter is typically the slowest for iPhone sales, but analysts are forecasting a quarterly record of $29.9 billion, versus $19.8 billion in the year-earlier period, according to FactSet. Analysts expect strong iPhone sales to be buoyed by bigger-than-expected demand in China. Unit estimates range from 48 million and 50 million, which imply year-over-year improvements of between 36% and 42% from the 35.2 million phones Apple AAPL, +3.03% sold a year ago.

Here’s what to expect:

Earnings: Analysts expect Apple to report adjusted earnings per share of $1.90, up from $1.40 in the year-earlier period. Estimize, a fast-growing software platform that uses crowdsourcing to garner earnings estimates from hedge fund executives, brokerages and analysts, has Apple earning slightly less: $1.86 a share. Apple has surpassed Wall Street’s non-GAAP EPS estimate for 11 straight quarters. It has toppled Estimize’s consensus in each of the past three.

Revenue: Sell-side analysts expect Apple to report revenue of $49.3 billion, according to FactSet, up from $37.4 billion in the same period last year. Contributors on Estimize are forecasting revenue of $49.3 billion. In April, Apple forecast revenue of between $46 billion and $48 billion. Apple missed revenue expectations in 2014’s third quarter, but it has trumped the consensus every quarter since.

Stock reaction: Shares of Apple are virtually flat from the company’s last earnings report on April 27, but remain up close to 40% from 12 months ago. Analysts are overwhelmingly bullish on the company, with the vast majority of analysts currently rating Apple the equivalent to buy, according to FactSet. Among a poll of more than 40 analysts, the average 12-month stock target on Apple is $147.62, which would mark a 14% increase from Apple’s closing price of $129.62 on Friday. Shares of Apple traded down about 0.8% to $130.99 Tuesday morning.

What to watch for: While iPhone sales have been on a rip due to the popularity of the iPhone 6 and larger-screen iPhone 6 Plus in China, there are concerns that overall smartphone-industry growth could decelerate in the latter half of this calendar year. Among those worries is that demand in China, which overtook the U.S. earlier this year as the world’s largest iPhone market, could dry up if the market reaches levels of saturation and economic concerns put a damper on spending.

In May, industry tracker IDC tapered its own prediction on global smartphone growth, forecasting growth of 11.3% in 2015, compared with 28% in 2014. Earlier this month, Deutsche Bank analyst Sherri Scribner predicted that iPhone 6 sales would slow throughout the remainder of this year, and that Apple would underperform the overall smartphone market in 2016.

“The well-known negative is that difficult comps starting in the Dec-15 quarter will soften investor optimism around iPhone share growth,” Piper Jaffray analyst Gene Munster wrote in a note to clients this week.

But analysts nevertheless remain bullish. On Monday, Munster reiterated an overweight rating and $162 target on the stock, saying he thinks iPhone unit growth will signal continued acceleration of the product category; and Cantor Fitzgerald reiterated a buy rating and $195 target on Apple, saying it thinks the upgrade cycle in China to a larger-size iPhone will be a “multiyear event.”

Meanwhile, the June quarter represents the first for Apple Watch sales. Apple has been tight-lipped on the category to date. In July, Deutsche Bank’s Scribner trimmed her Apple Watch estimates, saying demand appears to have stabilized after an initial pop. Munster said he thinks demand could improve next year as developers introduce native apps.