Analyst: Apple focused on software-driven iPhone product cycle rather than hardware

“Fresh off a meeting with senior executives at Apple, Morgan Stanley analyst Katy Huberty said the company sees product cycles as being driven by software rather than hardware and is expected to announce major software updates at the Worldwide Developers Conference in June,” Josh Ong reports for AppleInsider.

“After meeting with Apple Chief Financial Officer Peter Oppenheimer, Senior Vice President of Retail Ron Johnson and Vice President of Internet Services Eddy Cue, Huberty issued a note to clients reiterating her Overweight rating for the company and downplaying concerns about the company’s margins and the possibility of iPhone saturation,” Ong reports. “According to Huberty, Apple executives highlighted the fact that ‘the company generally views product cycles as software driven’ during their meeting.”

Ong reports, “Given the software emphasis, Huberty suggested that ‘major feature/function updates’ will come at Apple’s Worldwide Developers Conference, which runs from June 6 through June 10 in San Francisco.”

Read more in the full article here.


  1. So…analysts actually interview company execs? I thought they all just read press releases, received kickbacks, and ran their mouths…oh wait that’s the tech bloggers, sorry…

  2. focusing on software…. we should note Apple is still packing the best hardware out there and just lunched the tablet market with the iPad last year… its always been the mix of both hardware and software engineering that made Apple what they are… with amazing software you tend to forget about the hardware under it…and thats what amazing software do…you forget it… but your running a computer

  3. My best guess: beyond the OS or IOS, look for significant updates in Aperture (4), Logic, iWork (finally) and Cloud Services (MobileMe Plus) and Final Cut Express. Some will have deeper integration with Final Cut Studio (already announced).

    1. I think the announced Final Cut Pro is the replacement for Final Cut Express, thus the $299 price. When it is released in June, I think we will see FCE withdrawn. What I think we haven’t seen yet, is the replacement for Final Cut Studio 2.

      I’d love to see iWork and we might, but I seriously doubt we will see Aperture 4.

  4. Katy Huberty isn’t exactly the person I would go to for good insight on Apple’s future.

    Now we see that she isn’t really getting what Apple is all about for the present (and the past). Apple is about the whole package. To people who are used to comparing raw hardware specs, Apple may seem to be overly software-focused. To people who get what Apple is about, they are obviously product-focused. If Apple is not releasing new hardware right now, then they will obviously be excited about improving existing products through software updates. When new hardware comes out, they will be excited about the new capabilities that hardware (and accompanying well-designed software) provides.

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