Kathy Huberty, Executive Director, Morgan Stanley Equity Research
This prediction by Huberty is vague at best, it covers a wide range of potential apps or services, it sounds like she got hold of some inside information from a cousin, who’s brother knows this janitor who works at apple, walking by Edie Cue’s office. But maybe there’s something to this, cuz a story like this wouldn’t just appear in AppleInsider without having some fact checking, would it? It certainly would appear here in AppleInvestor, as I have very little journalistic integrity.
Oh, and the graphic, it’s to die for! It looks like one of those hurricane probability paths the weatherman uses on TV, depicting the range of prices that Apple stock could go to on this shred of news, it’s priceless!
Apple Hurricane Price Predictor – source Morgan Stanley
Hurricane Path Probability Map – source Education.com
In a note to investors on Thursday, Morgan Stanley analyst Katy Huberty, who recently met with Apple management, said the company could debut new internet-based services as well as a “killer app” later this year.
In the near term, Huberty said Apple could make a surprise announcement at the upcoming Worldwide Developers Conference in June regarding a new type of internet service such as streaming music or a mobile payment system. She went on to say that Apple Internet Software and Service chief Eddy Cue is believed to be working to improve existing services like iCloud and Maps, but at the same time is planning to launch new initiatives.
“We believe Apple could charge either developers or users for some of these services, which could boost Apple’s annuitized revenue stream and better monetize its large user base,” Huberty writes. “For example, Apple could offer a streaming music service using a freemium model.” Freemium apps allow users to download and use certain titles for free, with costs recouped through advertisements or in-app purchases. Sometimes these apps offer to remove ads for a certain price.
Apple is rumored to be working on an Internet radio service, dubbed “iRadio,” though disagreements between the company and content owners over royalty rates are supposedly holding up proceedings. A report last week claimed Apple was close to inking a deal with Warner Music and Universal Music Group, but there has yet to be an official announcement regarding such an arrangement.