A Morgan Stanley analyst has predicted that Apple may introduce a line of cheaper iPhones in June.
"We expect Apple to launch new iPhones in June that offer both a lower total cost of ownership and new functionality, potentially including gesture-based technology," Katy Huberty wrote in an investor note obtained by AppleInsider.
"We [also] expect Apple to ship its first iPad and announce additional content deals in late March to better than expected demand. We see the iPad targeting the sub-$800 consumer notebook market which equates to 30M annual units just in the US (120M globally."
Huberty explained that the "biggest barriers" to increased iPhone adoption was hardware costs followed by service plans.
"The investment in the device has been its biggest issue in both developed markets like the US and emerging ones like China," she added.