By Cody Lee on May 20, 2014
It seems like every time Apple is about to release a new smartphone, NFC rumors pop up. I’m not sure if some folks just really want the technology to succeed, or think the iPhone needs it to be compatible with various products and services, but the talk has seriously become an annual thing.
And this year is no different. Back in March, analyst Ming-Chi Kuo noted that his supply chain checks signaled that Apple was building NFC chips for its iPhone 6, and earlier this month, Brightwire echo’ed the claim. Today, Morgan Stanley adds its weight to the claim in an investors note… Read More
By Christian Zibreg on May 12, 2014
In announcing financial results for the March 2014 quarter, Apple surprised analysts by reporting basically flat iPad growth.
Compared to the same quarter in 2013, sales of the Apple tablet hit the 16.35 million unit mark versus analyst consensus of 19.7 million units. More worryingly, it’s a 16 percent annual drop from the 19.5 million iPads moved in the year-ago quarter.
Slowing growth is the new normal rather than an anomaly because the tablet market as a whole has seen little innovation lately, cautions Morgan Stanley analyst Katy Huberty… Read More
By Ed Sutherland on Aug 20, 2013
One Wall Street analyst has some comforting words for Apple fans watching the iPhone in China submerged under the waves of cheap Android smartphones: wait until the iPhone 5C arrives. Apple’s highly-expected budget handset dubbed the iPhone 5C could pole-vault the Apple brand into first place, overcoming Samsung and other Google-powered devices.
The key to giving the iPhone the lead in China: the right price and wide availability. A Morgan Stanley survey of Chinese smartphone consumers suggests an iPhone costing about $486 and offered by China Mobile could give Apple’s marketshare a double-digit boost… Read More
By Christian Zibreg on May 9, 2013
Morgan Stanley analyst Katy Huberty was visiting Hong Kong and Taiwan recently. She is now back from China with some interesting Apple news. Tim Cook & Co., she wrote in her note to clients, may be close to striking an iPhone distribution agreement with China Mobile, the world’s top wireless carrier by revenue and subscribers.
Specifically, Huberty wrote that “TD-LTE licenses, and related phone launches, are expected by year-end,” in her note to clients. China Mobile debuted small-scale TD-LTE network in 2010 and last year expanded coverage to select large cities. In case you were wondering, TD-LTE is a variant of the fourth-generation Long Term Evolution radio technology, also known as LTE… Read More
By Ed Sutherland on May 8, 2013
A well-known Wall Street Apple observer expects Apple’s manufacturing partners to start producing multiple new iPhone models in June or July, with the new smartphones introduced around September.
While the analyst note meshes with today’s report of Sharp gearing up to begin mass production of the iPhone 5S screens next month and other reports mentioning multiple iPhones on Apple’s roadmap, what’s perhaps most interesting is word that any drop-off in iPhone demand seems to be over.
And in her additional remarks bolstered by others, Morgan Stanley analyst Katy Huberty tells investors Wednesday that Apple could sell many iPhones in China even if the device were not priced cheaply… Read More
By Cody Lee on Mar 18, 2013
Morgan Stanley’s resident Apple expert Katy Huberty appeared on CNBC’s Fast Money Halftime Report this morning, in a rare TV interview, to field questions on her firm’s current positive buy ratings for both HP and Apple.
Asked about Apple, Huberty—who has an overweight rating on the stock with a price target of $630—says the company is poised for a big year with new software features for the upcoming iPhone, including one ‘killer feature.’ Read More
By Christian Zibreg on Feb 22, 2013
After meeting with Apple CFO Peter Oppenheimer recently, Morgan Stanley analyst Katy Huberty issued a report proclaiming so-called budget iPhone a no-brainer. Huberty joins what is now a growing list of analysts calling for such a device so Apple could better target emerging markets where cash-strapped folks mostly buy unlocked sub-$200 handsets – unlike the United States where carriers subsidize smartphones handsomely.
Thanks to these generous subsidies, US consumers don’t pay full price for the hardware – provided they agree to a long-term service agreement, of course. Now, with the penetration level for the iPhone approaching a limit in the high-end segment, the untapped low-end represents an estimated $135 billion opportunity.
Even with Apple’s margins peaking, an iPhone mini – as the media dubbed it – should triple Apple’s addressable market in China and add nearly $2.4 billion to its handset business… Read More
By Christian Zibreg on Feb 11, 2013
Analyst Scott Devitt of Morgan Stanley has estimated that Google pays Apple up to a billion dollars each year to be the default search engine choice on iOS. That’s $1 billion in pure profit.
The two companies apparently have a per-device deal in place rather than a revenue sharing deal, he wrote in a report titled “The Next Google Is Google.” The fee-based co-operation was agreed on in order to simplify accounting and it lets Apple collect upfront payments.
By contrast, Devitt estimates that Google pays around $300 million annually to Mozilla to be the default search engine for Firefox.
While one billion in traffic acquisition costs isn’t much relative to Apple’s $13 billion in holiday quarter profit, it ain’t spare change either. Moreover, it just shows that Google is very much keen on having iOS users search the web using Google search…
By Christian Zibreg on Feb 5, 2013
Apple’s 10-Q filing with the United States Securities and Exchange Commission shows purchase commitments for the March quarter dropping from $4.5 billion two quarters ago to just $904 million. Of course, two quarters ago Apple was ramping up iPhone 5 production and investing heavily in then new in-cell touch displays. Still, that’s a huge drop.
One clever interprets this data point as a sign of the iPhone 5S not needing new manufacturing processes, in turn proving it’s gonna look just the same as the current-generation iPhone 5. Notable changes will be from the inside, like the speedier CPU/GPU, better cameras and what not. Man, I should have been an analyst… Read More
By Ed Sutherland on Dec 18, 2012
In the latest round of ‘is the iPad mini a cannibal?’ we go to Morgan Stanley’s Katy Huberty, who told investors the concern is “overblown.” Huberty says nearly half of the 7.9-inch tablets are bought by new customers. While the Morgan Stanley AlphaWise survey also found slightly fewer purchases of the iPad mini are by new tablet owners – suggesting the small tablet is taking a bite out of larger iPad sales – the risk is “manageable”, the analyst said… Read More