After meeting with Apple management,Morgan Stanley analyst Katy Huberty noted that the company could launch new internet-based services as well as a “killer app” later this year.
Huberty said that Apple is expected to announce at the upcoming Worldwide Developers Conference in June about a new type of internet service, which is considered to be streaming music or a mobile payment system. Huberty writes that “Apple could offer a streaming music service using a freemium model.” “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.” Specialists are also working to improve services like iCloud and Maps, but new initiatives are also in their plans for launching. Thus, Cupertino is close to announcing a new project.
Among Apple’s new projects is also an Internet radio service, “iRadio,” but because of some disagreements between the company and content owners, the process is slowing down. Apple is expected to have a deal with Warner Music and Universal Music Group, but there is still no news concerning such a cooperation.
The analyst expects great earnings from the launch of “iPhone 5S” along with a low-cost model, a “killer app” to Siri and closer relations with Japan’s NTT Docomo and China’s China Mobile.
In March, Apple was suggested to get back some of its growing $137 billion cash through dividends and share buybacks.