by , 11:05 AM EDT, July 12th, 2007

Apple plans to sell 10 million iPhones during its first 18 months, but the company may already be well on the way to beating that goal only two weeks after its launch. RBC Capital is projecting that Apple may produce 8 million of its combination iPod and smartphone in calendar year 2007, which means the company could sell upwards of 14 million before the end of 2008.

The analyst firm also expects that Apple may introduce a higher capacity iPhone -- possibly with 16GB of memory -- before the end of 2007, and may lower the price of its current 4GB and 8GB models to stimulate demand. Apple may also increase the display resolution and release a 3G/HSDPA compatible iPhone by spring of 2008.

Along with iPhone revisions, Apple may also launch new iPod models before the end of the year. Like other analyst firms, RBC Capital is predicting that Apple will release a new iPod nano and video capable iPod with iPhone-like features, possibly including Wi-Fi, a touchscreen, and a new interface.

Based on these predictions, RBC Capital is raising its iPhone sales estimate from 10.1 million units to 13.5 million for calendar year 2008. Fiscal 2008 revenue is now estimated at US$32.2 billion, up from 31.2 billion, with $4.52 EPS, up from $4.38.

RBC Capital is maintaining its "Outperform" rating and $160 target price for Apple's stock. Apple is currently trading at $133.22, up 0.83 (0.63%).