Apple Inc. (AAPL, -0.66%) is currently hosting developers at its annual conference in San Francisco from the 8th to the 12th of June.
The highly watched event commenced at 10am Pacific and it’s expected to mainly focus on software including the preview of iOS 9.0, Apple’s next generation mobile operating system, as well as important apps updates for the recently launched Apple Watch.
On Friday, Apple shares closed down and traded at $128.65. Despite this decline, in the last 12 months, the shares of this iPhone giant are up about 40%.
Interestingly, Wamsi Mohan, Bank of America analyst, said that Apple’s stock performs badly during the day of the WWDC (Worldwide Developers Conference) keynote where it declines by about 2% to 3%. The performance however turns around in the following 30 days.
On Monday, Apple previewed its new mobile operating system, iOS 9.0. The new Mac OS X called El Capitan was also previewed. Apple has also launched a new Apple Watch operating system (OS) which will allow for the use of certain apps such as fitness trackers. These apps will operate as native watch apps using WiFi.
Added to this, Apple also launched Apple Music, which is a music streaming service. The tech giant is clearly ready to take on rival Spotify. According to an analyst at RBC Capital Markets, Amit Daryanani, this service is likely to cost the same as Spotify, at $10, which Apple has now confirmed.
The streaming service should be a valuable addition for Apple as the company looks forward to turning around declining music sales. Despite iTunes revenue being boosted by strong app purchases, according to Merrill Lynch of Bank of America, music downloads have fallen by 30% from 80% to 50% in just a few years.
Analysts also expect Apple to release an app store that would sell games designed for bigger screens as well as new hardware with Siri integration.
A live streaming TV service is unlikely to be unveiled during the WWDC but the release could be scheduled for later this year or early next year.
The telecom giant is also expected to spare some time at the WWDC to address Apple Watch apps since some of its supply issues have already been resolved, with deliveries now on track.
Tech analyst at Global Equities Research, Trip Chowdry, expects the company to also release a new Apple WatchKit.
As it is the norm with Apple, the company is expected to give a sneak preview on future innovations in their efforts to put themselves one step ahead of Google which is having its own developer conference next week.
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