Apple Inc. (NASDAQ:AAPL) is all set to have its second big event of the year this weekend as the World Wide Developers conference kicks off. There are a lot of rumors going around as to what the company will reveal at the conference. Whatever the company does it’s sure to have an effect on the firm’s stock price. Here’s our round up of the rumors, their likelihood and the effect they might have if they are announced.
iPhone 5: This is the holy grail for Apple investors. A new iPhone announcement would kick the stock from its recent funk as traders expect sales to pick up in a big way. A new iPhone is always a highly anticipated move by the company as it expresses the pent up demand of those waiting for the next upgrade to buy.
Likelihood: Very Unlikely. The iPhone is the mother of all product launches. No other device in the world grabs as much attention as an iPhone release and Apple usually gives it its own event for that reason. Tim Cook may try and differentiate himself from his predecessor but it is unlikely this is how he’ll choose to do that. Most analysts reckon this launch will be saved for sometime in the Autumn.
Effect On Stock: Big. If a new iPhone is announced the expected effect on the stock, according to historical trends, will be large. The iPhone is still Apple’s biggest selling product and sales are increasing. In the past there has been a big jump in sales with the release of new models and analysts are expecting the same with the iPhone 5. Though an unlikely announcement this is one of the biggest Apple could make.
iOS 6: An update to Apple’s mobile operating system is key to the evolution of the company. iOS 6 is likely to push the benefits of the iCloud to users of Apple devices and demonstrate some other new features.
Likelihood: Very Likely. iOS 6 will probably not be released this weekend but it will probably be shown off and its new features discussed. This will give time to developers to find out how to best implement the new features and write amazing apps for it.
Effect On Stock: Negligible. iOS 6 is expected. It’s a natural evolution in Apple’s strategy and unless it makes some huge changes it is unlikely to sway investors one way or the other. It probably won’t be released until later on in the year, possibly with a new iPhone, and expectations aren’t as high from new software as they are from new hardware.
Apple iTV: This is one of the biggest rumors circling around Cupertino at the moment. Many analysts, I’m looking at you Mr. Munster, argue that this is the perfect way for the firm to tie together is products around a household and extrapolate the halo effect. Apple Fans are just hungry for a new product to sink their teeth into.
Likelihood: Almost Zero. If the iPhone update deserves its own product launch then a complete expansion of Apple’s product line definitely does. There hasn’t been as much talk about this lately as there was a couple of months ago because iPhone rumors are in full swing. An Apple TV would be a huge move for Apple. It doesn’t look like they’ll make it at this moment.
Effect On Stock: Huge. A new product line is exactly what investors are looking for to kick them back into a frenzy over Apple. If a full television product arrives this weekend there may very well be a surge on Monday. This would be a defining moment for Apple, if done right, and would see the Apple TV take up the media for some time before and after its release.
Mac Updates: From the entire product line to just the Macbook Pro there is an expectation that Apple will do something with its Macs. Retina Screens are being talked about for the firm’s portables and there could certainly be some updates to the hardware.
Likelihood: Likely. We’ll probably see some kind of updates in the Mac line this weekend. Whether this will encompass a reimagining of the entire line or just a redesign of one or two key products
Effect On Stock: Small. The Mac line from whence Apple came is no longer the most talked about product they sell. The personal computers don’t sell nearly as many units or bring in as much revenue as the mobile devices. That means an update may push the stock in anticipation of greater sales but it will not push it far.