Morgan Stanley analyst Katy Huberty who recently met with Apple management has released a research note to clients, in which she claims that Apple is gearing up to launch a new internet based service as well as a “killer app” later this year.
She also notes that Apple Internet Software and Service chief Eddy Cue is working on improving existing services such as iCloud and Maps.
We believe Apple could charge either developers or users for some of these services, which could boost Apple’s annuitized revenue stream and better monetize its large user base. For example, Apple could offer a streaming music service using a freemium model.
She notes that Apple could announce the new internet based service such as streaming music or a mobile payment system at the WorldWide Developer Conference in June.
Apple is widely expected to give a preview of iOS 7 at the WWDC 2013 keynote. Apple usually showcases the top 10 features out of the hundreds of new users features during the keynote address. Last year, Apple gave us a preview of iOS 6 features such as the new Maps app, Passbook app, improvements to Siri, Facebook Integration, Do Not Disturb feature, FaceTime over cellular and improvements to Phone, Safari and Mail apps.
There have been several rumors and speculations, which suggest that the killer app could be for Apple’s Pandora-like radio service, which will probably be bundled for free with iOS devices. Earlier today, a report claimed that Apple is set to sign a deal with Universal Music, which is the largest music label as soon as next and has been pushing launch the service this summer.
With the lack of an NFC chip in current iOS devices, we’re assuming that the mobile payment system could be one of the major features of the next generation iPhone, which has been rumored to include both NFC and fingerprint sensor.
What do you think will be the killer app in iOS 7?