Morgan Stanley: iPod, iPhone Demand Falling

Morgan Stanley just cut its price target on Apple shares due to what the company cites as weaker demand for its iPod and iPhone, according to Reuters.

“The brokerage conducted a survey of 2500 U.S. consumers in late November and said despite significant price cuts, only 5 percent of respondents indicated ‘extreme’ interest in purchasing an iPhone, down from 7 percent in its February 2007 survey.”

Part of this isn’t news, since it’s been clear for a while that iPod sales have peaked in light of the iPhone and other cell phones’ increased ability to play music—at least without causing the owner to scratch out his eyes in frustration. (Hey, ever try playing an MP3 file on a cell phone back in 2005? It was a real concern.)