Apple's WWDC: Wall Street expects to be underwhelmed
Apple analysts are expecting the company's developer powwow to be a ho-hum affair to Wall Street types---and potentially a negative.
In other words, Apple isn't expected to surprise anybody---with new iPhones or a Steve Jobs appearance.
- New iPhones may or may not be announced at WWDC. Munster still thinks new low-cost iPhones are coming in July.
- Cheaper iPhone plans are highly unlikely.
- Jobs isn't going to make an appearance, but is likely to return at the end of June.
Munster writes:
Regardless of the debate surrounding the announcement of new iPhones (at WWDC or when Steve Jobs returns to the company), we continue to expect the new models to ship in July. We also continue to expect a family of iPhones to be released; 1) a low-cost version with lower capacity, the same camera as current iPhones, and possibly fewer software features, and 2) a high-end iPhone model in 16GB and 32GB versions with an upgraded video camera and new features for $199 and $299 respectively (with unchanged unlimited data plan pricing).
We believe Street expectations for the pricing of the low-cost model appear to be aggressive, with many investors expecting a $99 iPhone with reduced monthly fees for data. This likely comes as a result of media reports indicating that the CEO of AT&T Mobility acknowledged that AT&T has considered reduced monthly fees for limited data usage on the iPhone. We see this as a possibility, but we believe $149 is a more likely price point and we believe the chances of reduced monthly fees for a limited monthly data allotment from AT&T are about 25%. We do not think Apple is interested in capping the data limits to achieve a lower price point.
Munster did add that Snow Leopard, the latest Mac OS, may garner some interest, but is hardly a show-stopper. Snow Leopard improves performance, but isn't expected to have many "flashy new features."
Morgan Stanley Kathryn Huberty also handicapped WWDC. Here's a look at how events may play out:
