Apple (AAPL) iPhone demand for the March quarter is ahead of expectations, says Morgan Stanley Morgan Stanley analyst Katy Huberty. Huberty reported that the firm’s iPhone Tracker, which is based on sell-through data, implies demand for 56.5M iPhones in the March quarter, which she notes is “far ahead” of the firm’s estimate of 49M iPhones.

Huberty also notes that the firm’s Asia tech team believes the inventory digestion in Apple’s supply chain has come to an end. The analyst maintains an Overweight rating and $135 price target on Apple shares.