Apple Inc.’s AAPL, -3.17% iPhone 7 is expected to be overshadowed by an iPhone 8 “super cycle” in late 2017.

Credit Suisse reiterated an outperform rating and $150 price target on Apple’s stock Wednesday, saying that while the near-term is still uncertain, the iPhone 8—which is expected to come instead of an iPhone 7s on the iPhone’s 10-year anniversary in 2017— would have “significant innovations” that would spark a flurry of smartphone upgrades and switchovers from competitors.

Credit Suisse analyst Kulbinder Garcha said he expects the iPhone 7 cycle, which kicks off in September, to be muted in comparison, with the phone offering modest feature improvements, such as a slightly thinner case and more storage.

The iPhone 8, however, might have radical changes, he predicted, such as an OLED screen, full glass display, no home button, enhanced haptic feedback, wireless charging and improved camera.

Garcha raised his fiscal 2018 unit estimate to 250 million, which would represent a 16% year-over-year increase from an estimated 215 million increase in 2017. That 2017 estimate implies a 4.2% improvement from fiscal 2015, according to Credit Suisse.

Stronger demand for the iPhone 8 is also expected to lead to higher selling prices, according to the analyst. He estimates average selling prices of $667 for the iPhone 8, versus $653 for the iPhone 7.

“Acknowledging the higher level of uncertainty around the quality of the product cycle near-term, we still see solid risk reward arguments,” Garcha said in a note to clients, published Wednesday.

The analysis of the product cycle comes two days after Apple hosted the keynote for its annual developer conference, WWDC. During the two-hour long presentation, Apple unveiled updates to four of its operating systems, which included improvements to Siri.

While hardware is still Apple’s largest revenue source by far, with the iPhone comprising 65% of total sales last quarter, software and services are predicted to be the next big sales driver for the company as hardware markets become saturated. Last quarter, services revenue topped those from both the iPad and Mac.

Last quarter, Apple reported its first quarterly decline in iPhone sales, and analysts are calling for the company’s first annual decline in iPhone sales this fiscal year.

Shares of Apple rose 0.4% to $97.80 in premarket trade. They have declined by 6.8% over the last three months and 23.2% over the last year, underperforming the Dow Jones Industrial Average, which is up 2.5% on the last three months and down just 0.6% on the year.