Morgan Stanley Sees Demand for Apple's iPhone Underestimated

From MarketWatch

Morgan Stanley analyst Kathryn Huberty reiterated her buy rating on Apple Inc. shares saying she believed the market is underestimating the likely success of the iPhone. She raised her 2007 iPhone sales forecast by 33% to 8 million units from 6 million, following a survey of 2,500 U.S. consumers.

Huberty also believes Apple's ability to leverage strong iPhone demand is being underestimated. "While we see positive leverage drivers across Apple's product segment, the iPhone alone increases scale, strengthens retail store leverage and takes advantage of lower memory pricing in the market," Huberty said in a research note.

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