Apple kicked off WWDC 2021 on June 7 with an almost two-hour introductory presentation. Apple Maven summarizes below three key conclusions from events that Apple stakeholders need to keep in mind.
# 1. Expectations below market
The rumor mill was spinning fast before the event. In addition to the long-awaited software updates, some on Wall Street believed new hardware could be introduced. In that case, WWDC21 would likely have an impact on Apple shares.
However, WWDC21 was lighter than expected in announcing new products, services or chips. Instead, operating systems (i.e., iOS 15, iPadOS 15, watchOS 8, and macOS Monterey) were the only highlight of the event.
Some market frustration was evident from the price of the AAPL. The stock moved from $ 125.40 per share at the beginning of the introductory address to $ 124.97 at its end, despite the S&P 500 holding tight. See the chart below.
Figure 2: Apple stock price action on June 7th
data from Yahoo Finance
# 2. It’s about the ecosystem
But investors should not be too disappointed. Apple has hit the ecosystem message again. The new features of iOS 15 allow Apple devices to synchronize better with each other, encouraging multi-platform use and increasing the value of the company’s “complete product package.”
By improving the software and adding more platforms, the company continues to strengthen its brand as a key household name. In my opinion, this is positive for the investment thesis, although mostly long-term (ie not a short-term catalyst).
# 3. Privacy is key
Apple’s position on privacy was very clear. The company used WWDC as another platform to defend its security and privacy policies (e.g., against Facebook) and the application ecosystem (from Epic Games and regulators). The Cupertino-based company certainly had to play defense this year.
Apple’s privacy updates include blocking tracking in Mail and Safari; hidden location and IP address; Application Tracking Report in which users can periodically check applications using personal data; and Siria’s offline speech recognition, allowing for more privacy.
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(Disclaimer: This is not investment advice. The author may have one or more shares listed in this report. The article may also contain affiliate links. These partnerships do not affect editorial content. Thanks to Apple Maven for support)
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