Back in the olden days — about three or four years ago — I spent nearly six months browbeating my Morgan Stanley broker to buy me some stock in Apple. He dragged his heels, whined a good bit and eventually capitulated when the stock was near an all-time low.

Yesterday, his brokerage firm officially changed its collective tune and upped its rating on the consumer electronics maker to the equivalent of a buy, citing the long-term potential of its popular iPhone.

“We believe Apple is emerging as the clear leader in the battle over the mobile Internet,” MS Analyst Kathryn Huberty wrote in a note to clients.

According to a story in the Wall St. Journal, Huberty predicted that the company will cut the price of its current iPhone model, which could drive a 50% to 100% increase in unit demand, depending on the size of the price reduction.

She also said she expects the company to announce new devices that will drive demand even further, but did not predict any timetable.

All this comes just on the eve of the annual Apple Worldwide Developers Conference, where new products and changes to old ones are usually unveiled.

Here’s a sampling of what the rumor mill says to expect soon from Apple:

• The fifth-generation iPod nano will get a wider screen but keep the Click Wheel of all prior nano models … no touchscreen controls. It will add a camera.
• The next-generation iPhone will come in six versions: two storage capacities each for 3G, enhanced 3G (”3.5G/3.75G”), and mainland China versions of the phone, which will have the same size and general design of the current model.
• Apple may soon allow movie and TV show downloads directly from an iPhone or iPod touch.
• The iPhone case is said to be the same general design as the current model but with a “less scratchable matte plastic body.”
• The iPhone will get an additional 128 MB of RAM (256 MB total), which should result in faster app launches, faster web browsing, and better overall performance.
• iPhone  storage will  increase to a max of 32 GB.

With all this news on the horizon and the Morgan Stanley seal of approval, Apple’s stock surged more than eight points on Tuesday.

Glad to see the brokers are finally following my lead.

Tags: Apple, consumer electronics, iphone, ipod, Morgan Stanley, new devices