“Apple’s decision to split the iPhone lineup into a high-end flagship model and a more affordable mid-range offering sets the stage for the company to increase the frequency with which it updates the handsets, one analyst increasingly believes after meeting with the company’s chief executive, Tim Cook,” Shane Cole reports for AppleInsider.

“In a Wednesday note to investors, Morgan Stanley Apple watcher Katy Huberty called the iPhone line divergence ‘a thoughtful approach’ following conversations with Cook and Apple’s Chief Financial Officer Peter Oppenheimer,” Cole reports. “Huberty believes Apple is now primed for ‘multiple refreshes per year’ of the popular device, akin to the twin launches of iPad 3 and iPad 4 in 2012.”

Cole reports, “Huberty also sees services growing into a more prominent profit driver for Cupertino. She cites the potential advantages of integrating Apple’s nearly 600 million ‘high-end’ customer accounts, most linked to credit cards, with new hardware like the Touch ID fingerprint sensor to create ‘new services revenue streams.'”

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