New iPhone Expected to Cost Less

Apple's new iPhone is expected to have a lower total cost of ownership and add new gesture based functionality.

Morgan Stanley research has found that the highest barrier to greater iPhone adoption is the cost of hardware, followed by the service plan.

Analyst Katy Huberty expects Apple to introduce a new model in June that will be economically friendly to even more consumers.


"We expect Apple to launch new iPhones in June that offer both a lower total cost of ownership and new functionality, potentially including gesture-based technology," she wrote.

Huberty is bullish on Apple's stock and optimistic about the iPad.

"We expect Apple to ship its first iPad and announce additional content deals in late March to better than expected demand," Huberty wrote. "We see the iPad targeting the sub-$800 consumer notebook market which equates to 30M annual units just in the US (120M globally)."

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