Apple Inc may sell more than 800,000 iPhones in the current quarter, UBS said in a research note on Tuesday. That suggested the company would easily top its own target of some 730,000.

Our checks continue to indicate solid demand for the iPhone despite typical moderation in excitement from launch and extremely high expectations, analyst Ben Reitzes wrote.

Our findings point toward modest upside to our fiscal 4Q07 (fourth quarter, 2007) shipment estimate of 800,000 units. In addition, we believe the Mac story is exciting as demand is strong for notebooks and recently introduced iMacs, he said.

Apple on July 25 had said it expected to sell its millionth iPhone in its fiscal fourth quarter ending in September, after selling 270,000 in the third quarter.

Shares rose $5.35, or 4.38 percent. to $127.57 on Nasdaq.