Apple Inc. (NASDAQ:AAPL) – the most popular tech stock among hedge funds we track – has been rumored about releasing either an iPhone 5S or an iPhone 6 this year, but there hasn’t been much buzz as to whether the company will introduce any new innovations in its smartphone or whether this will be just a reset of the recent models. However, Monday there may have been some insight when Morgan Stanley analyst Katy Huberty spoke on the “Fast Money Halftime Report” on CNBC.
Huberty, who follows Apple Inc. (NASDAQ:AAPL) for Morgan Stanley, made this claim of a “killer feature” that would catalyze a rally for the Cupertino tech giant, and her statement was reproduced by Barron’s. Does this make Huberty legitimate? Time might only tell, but to be brining this up on CNBC and have it reproduced in a prominent Wall Street entity like Barron’s can say alot.
Huberty, however, did not elaborate on what the feature might be, only to say that she expects Apple Inc. (NASDAQ:AAPL) to produce several software updates in its new iteration of the iPhone, which is expected to hit store shelves this summer. There is talk that the new smartphone will have something new like a fingerprint scanner or NFC capability that is already available on rival smartphones, which allow for the ability to pay via smartphone among other functions.
Huberty said, “I do believe that Apple is approaching a bottom. As you have heard, they are talking about returning more cash, and we think they will do that in coming weeks. But people don’t own Apple for that; they own Apple for innovation. You saw the Samsung Galaxy S4 come out last week, that shows you the innovation cards are up for grabs. What is lacking in [the S4] is a killer feature. We think that’s where Apple will surprise this year. This [iPhone] 5S cycle … will be about a killer feature that drives consumers increasingly to the platform, and that increases the value of those 500 million accounts.”
What do you think? Give us your thoughts about whether Apple Inc. (NASDAQ:AAPL) can produce an innovative smartphone with a “killer feature?” Let us know in the comments section below.
DISCLOSURE: I own no positions in any stock mentioned.
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