We are enthusiastic about Apple. Preview of iOS 7 at WWDC in June which could highlight a new killer app such as mobile wallet. A killer app, like mobile payments, could serve as a demand catalyst similar to Siri driving iPhone 4S sales
We expect Apple to preview new versions of iOS and OS X at the user conference in June. The next iPhone is likely to keep the same hardware form factor as the current iPhone 5 based on Apple’s historical iPhone cycles. Therefore, software and services will determine the success of iPhone 5S, in our view.
Innovative Services on iOS Platform
Eddy Cue, Apple’s head of Internet Software and Services, is working hard to improve Apple’s existing Internet-based services, such as iCloud and Maps, and at the same time planning to launch new services. For example, Apple could offer a streaming music service using a freemium model. Users could listen for free with advertisements, or pay monthly or annually to listen without advertisements and with potential access to more features.
Kevin Lynch’s move from CTO of Adobe to Apple is another sign that Apple could launch new services that leverage its large developer base. Lynch led Adobe’s efforts in subscription-based services and wireless devices.
Finally, we expect a New iPhone 5S and lower-priced iPhone launch in September.