According to J.P. Morgan analyst Mark Moskowitz, the hardware augmentations and extended Apple services will help thenext-generation iPhone lead the smartphone market next year. The iPhone 5, which will debut this October, is believed to be the top dog in the 2013 smartphone arena.
The main feature that’ll determine the iPhone 5 fate will be the support for 4G LTE, along with some other upgrades, that will make a big splash this year, guaranteeing its supremacy into 2013. The recently released investors note by Moskowitz reads: "We think that a combination of revolutionary hardware enhancements and software-driven services (i.e., Passbook, Maps, and FaceTime over cellular) stand to reaffirm the iPhone as the leading smartphone in 2013."
However, J.P. Morgan suggests that the way to the victory won’t be smooth and Apple may face a couple of bumps in the road. With the slightly trimmed calendar-year second-quarter sales and earnings estimates for Apple, tough times are widely expected for hardware vendors.
As for the iPhone sales for the third quarter, the firm has lowered the figures expectedly, as a slowdown in iPhone sales isn't unusual in the quarter before the new model release. On the other hand, .P. Morgan has increased its fourth-quarter sales estimates for the new phone on the basis of anticipated demand for the iPhone 5.
With that said, Apple may find it essential to rely more on the iPhone if J.P. Morgan's lower sales anticipations for the iPad and Mac appear to be precise. Moskowitz added: "Overall, our expectation of stronger iPhone unit sales and the related mix benefits partially counters our lower growth assumptions for the iPad and Mac businesses."