A low-priced iPhone makes a lot of sense, Morgan Stanley says, and it even could hit the market this summer.
Katy Huberty, an analyst with the banking firm, noted that after her meetings with Apple Chief Financial Officer Peter Oppenheimer, she’s convinced that innovation remains a top priority for the Cupertino, Calif., electronics giant. She also believes that Apple will increase cash return to shareholders and expand carriers, distribution, and possibly price points to drive iPhone growth.
She noted that a lower priced iPhone makes sense for several reasons:
“iPad Mini is expanding Apple’s customer base with 50 [percent] of purchases in China/Brazil representing new customers to the ecosystem.”
“Chinese consumers show a desire to purchase the latest version of iPhone (instead of discounted older generations).”
“iPhone 4 demand surprised to the upside in the December quarter.”
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