Apple will probably release a cheaper iPhone, says Morgan Stanley analyst Katy Huberty in the wake of a meeting with Apple CFO Peter Oppenheimer. Huberty says that innovation is still a "top priority" for Apple, and hence why she anticipates a bigger iPhone lineup, as well as unspecified services that could help "unlock significant value" and fuel further device sales. If it managed a one-third cannibalization rate and a gross profit margin of 40 percent, a low-cost iPhone could push up Apple's overall revenue and profit, Huberty suggests.
