Morgan Stanley Analyst: Apple to Release Cheaper iPhone and Pay More Dividend

  • February 22, 2013


Morgan Stanley Analyst: Apple to Release Cheaper iPhone and Pay More Dividend

In a note to investors, Morgan Stanley analyst Katy Huberty is reporting that Apple is set to launch a lower price iPhone and will likely increase the amount of dividend paid to shareholders, according to AppleInsider.

Huberty came away with this impression after meeting with Apple Chief Financial Officer Peter Oppenheimer recently.

“Huberty, in a note to investors on Friday, said that innovation remains a “top priority” at Apple. That’s why she expects Apple to expand the iPhone lineup, and also to introduce new services that can “unlock significant value” and drive device sales,” Neil Hughes reports for ApppleInsider. “She noted that demand for the iPhone 4, Apple’s current low-end handset offering, was surprisingly strong during the December quarter. With a gross margin of 40 percent and a one-third cannibalization rate, she believes a so-called “iPhone mini” would drive incremental revenue and gross profit.”
“The company’s approach to product decisions and innovation has not changed in the past several years despite the CEO transition,” Huberty wrote. “Making great products remains Apple’s core strategy and the company is as confident as ever about the future pipeline of new products and services.”

“Morgan Stanley has maintained its “o overweight”rating for AAPL stock with a price target of $630,” according to the report.

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Posted by | Posted at February 22, 2013 17:00 | Tags: , , , , , , ,
Storm is a technology enthusiast, who resides in the UK. He enjoys reading and writing about technology.

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