Apple Inc. (AAPL) kicked off its annual Worldwide Developers Conference on Monday. Here is the early reaction of the consumer electronics company's revelations at the virtual event.
Apple Ditching Intel Was ‘Star Of The Show'
The company's announcement that it will completely replace Intel Corporation's (INTC) chips with its own Apple silicon for the Mac devices within two years was the “star of the show,” according to Wedbush.
The move suggests Apple management is looking to take “more control” around the company's “chips/architecture and crown jewels hardware ecosystem moving forward,” Wedbush analyst Daniel Ives wrote in a note.
According to Loup Ventures' Gene Munster, the switch to the company's self-made chips will “unlock a host of new capabilities that will separate the Mac from Windows-based computers with features that PC makers can't match.”
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Newer Version Of AirPods Could Be Out This Holiday Season
Munster noted the two features announced for AirPods Pro — spatial audio and automatic switching between devices — are “two great examples of features only Apple can deliver.”
“[We] think the AirPods story is just starting,” the former research analyst said.
According to Ives, the features are “impressive” and “hint at another version of [AirPods] being released by holiday season.”
Apple Breaking Grounds In Digital Health
The Tim Cook-led company has an inherent advantage over smartwatch companies when it comes to tracking a user's digital health — its device ecosystem.
Apple announced new sleep tracking and fitness capabilities for its Apple Watch, both of which leverage user data on multiple devices, including the iPhone.
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“A smartwatch company can't access the same level of detail about a user's activity and motion from a watch alone, because Apple can use data from the phone, too,” Munster said.
Drumroll Ahead Of Major Hardware Launch
Wedbush maintained that Apple is likely to launch its iPhone 12 device with 5G technology by the September timeline, despite the impact of the novel coronavirus (COVID-19) pandemic. About 350 million of the company's 950 million iPhones are in an “upgrade window” at the time.
“Taking a step back, this will be a drumroll ahead of a major hardware release schedule ahead across the Cupertino product portfolio with iPhone 12 the main event and growth catalyst for the Street,” Wedbush said.
Ives also maintained an Outperform rating and $375 price target on Apple's stock.
Price Action
Apple shares closed 2.6% higher at $358.87 on Monday.
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