The above-market growth trajectory of Apple Inc.'s iPhone is expected to get a boost from its adoption of CDMA networking technology.

The company's initial penetration of the CDMA smartphone market kicked off in February when the iPhone became available at Verizon in United States.

While JP Morgan believes that opportunity could produce US$6-billion in revenues in 2012 in addition to another US$3-billion in non-Verizon CDMA penetration, analyst Mark Moskowitz thinks the Asia-Pacific region will be the next growth area for iPhones using CDMA.

Mr. Moskowitz expects Apple will next pursue China, India, Japan and South Korea for CDMA penetration since these regions possess higher rates of smartphone usage and consumer bases with rising economic statures.

Apple remains one of JP Morgan's top picks for 2011 with an overweight rating and US$450 price target.

The stock currently trades at 13.1x the firm's 2012 earnings per share estimate, compared to 12.6x for its peers. Mr. Moskowitz expects this valuation premium to expand, adding that Apple is trading well below its 3-year average of 19x.

"In our view, Apple is trading like a value stock and not as the high-growth story in large cap equities," he said.