Why Apple Inc. (AAPL) Stock Can Still Keep Its Shine … For Now

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HomePod might get the most attention from the Worldwide Developer Developers Conference (WWDC), hosted by Apple Inc. (NASDAQ:AAPL). But a closer look at the event will show a few solid takeaways from the event, and more importantly, investors have reasons to get more bullish on AAPL stock.

Why Apple Inc. (AAPL) Stock Can Still Keep Its Shine ... For Now

Source: Apple

HomePod looks like a “me too” product. Amazon.com, Inc. (NASDAQ:AMZN) already launched the Amazon Echo and Alphabet Inc’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Home is a compelling smart speaker.

Yet HomePod will have seven tweeters and run on a powerful, A8 processor. HomePod also has a wealth of data to work on, compared to the Echo. Siri’s machine learning algorithm has data that came from hundreds of millions of iPhone and iPad devices.

Remember that the two companies have very different goals and customers they are each targeting. Apple already makes profits from hardware sales, so HomePod could find success if Apple fans buy the unit. Amazon’s Echo relies on selling goods and encouraging its user to shop on the online store. Furthermore, although Amazon may lose out to HomePod, the two companies are partnering up elsewhere.

Apple TV will support Amazon’s Video app later this year.

AAPL: No iPhone 8 News

Apple made no mention of the iPhone 8, even if it seems possible that the company’s tenth-anniversary device may skip the iPhone 7S versioning. Alternatively, Apple could release both a 7s Plus and 8, if this rumor is true.

On Twitter, drawings surfaced, showing three new designs for the latest device. If the leak has any validity, the iPhone 8 will have a 5.8-inch screen, a vertically oriented dual lens and stronger material to house the device.

Augmented and Virtual Reality

Apple is not falling behind the trend of developing an AR solution. First, the iMac will get chips made by Intel Corporation (NASDAQ:INTC). The Kaby Lake processors will power the line-up and the 27-inch model will have enough power to handle virtual reality development.

Apple is moving ahead with AR development through the release of ARKit. This kit supports SceneKit, Unity (a game development platform) and the Unreal Engine (a game engine). With the technology natively supported on iOS11, Apple developers could build AR programs that are usable on all iPad and iPhone devices running the newest operating system.

Gamers who thought that Microsoft Corporation (NASDAQ:MSFT) got ahead on VR through Hololens or that Google Glass was in the lead are wrong. By making full use of the technology in existing devices, consumers could download an AR app and use the camera on them for the AR experience.

Speaking of iPads, Apple announced a refresh for two of the iPad Pros. The 10.5-inch model and 12.9-inch models will both have an A10X six-core CPU. The 12-core GPU, 12-megapixel rear-facing camera and 7-megapixel front-facing camera is more than enough power for any future AR app that a developer will release. The specifications also support HDR video. The new iPads will run iOS 11 when Apple releases the update.

iOS 11

iOS 11 will allow for message syncing across all devices. But a key update is the App Store, which gets a new look. By adding a “What’s New?” section, the company will showcase a new app daily. The fresh content may drive daily visits to the app, encouraging users to download and try new apps. It may even encourage users to buy apps or make in-app purchases.

Bottom Line on AAPL Stock

WWDC brought a number of major announcements that will drive hardware and software sales for Apple. New iPad pros, AR support and HomePod will give AAPL’s revenue a push in the months ahead. An iPhone 7s Plus and iPhone 8 launch later this year is a bonus for shareholders.

As of this writing, Chris Lau did not hold a position in any of the aforementioned securities.

Chris Lau is a contributing author for InvestorPlace.com and numerous other financial sites. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. He shares his stock picks so readers get actionable insight to achieve strong investment returns.


Article printed from InvestorPlace Media, https://investorplace.com/2017/06/apple-inc-aapl-stock-shine-now/.

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