Senior Apple executives are focusing the company’s product cycle on software updates rather than hardware upgrades, an analyst has revealed.
After a meeting with Apple Chief Financial Officer Peter Oppenheimer, Senior Vice President of Retail Ron Johnson and Vice President of Internet Services Eddy Cue, Morgan Stanley analyst Katy Huberty revealed that the company’s product cycles were software driven, Apple Insider reports.
Apple is also on track to making significant software announcements at the upcoming World Wide Developer conference. The company is expected to unveil the Mac OS X Lion operating system and the iOS 5 platform.
In a note to investors released after the meeting, Huberty refuted reports that suggest that the company’s profit margins would suffer and downplayed concerns of iPhone saturation.
The analyst also expects the company’s earnings per share to grow to $50 in 2013, building on low priced iPhones, ‘iPod-like’ shares in the tablet PC market and expanding product distribution in China and other markets.
According to Huberty, the company believes that the iPhone has a massive market for further growth and will continue to drive sales by releasing major iOS feature releases in the form of software updates.