Apple likely to announce major software updates in June

PanARMENIAN.Net - 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.

Though Huberty said Thursday, May 5, that Apple did not confirm during the meeting whether an iPhone hardware refresh was in place for later this year, she did address investor concerns that a delayed refresh would affect profits. Since Apple sees itself as software focused, major feature updates in iOS 5 and Mac OS X 10.7 Lion are expected to drive sales.

Huberty also took away from her meeting with the company's executives the message that Apple has several "potential tailwinds" that could better the company's margins, such as improved product costs, lower warranty expense and higher iPad ASPs, AppleInsider reports.

Apple is confident that the iPhone has room to grow, according to the analyst. Given that Apple sells the device in just 90 countries and approximately 185 carriers, compared to over 175 countries and more than 575 carriers for competitors, iPhone shipments are expected to continue to grow in a "natural expansion." The iPhone maker also communicated to Huberty that, based on "daily or weekly data from partners," it remains confident in the smartphone's inventory levels.

Huberty also reported that the company "plans to expand current retail stores and build larger new stores (up to 50/yr)" and will free up space for product set-up services to reduce product returns and increase overall transaction size.

Apple Retail has seen phenomenal growth as of late. Earlier this week, one analyst predicted that revenues from brick-and-mortar stores would "continue on a roll" as visitors flocked to the stores to try out the iPad. The first Apple Stores celebrate their 10th anniversary on May 19.