Apple Inc. (NASDAQ:AAPL)’s keynote speech kicks off the Worldwide Developers’ Conference (WWDC) this week, and it’s widely expected that major upgrades to iOS 7 will be the highlight this year.
Well-known Piper Jaffray analyst Gene Munster released a report to investors this morning listing his expectations for Apple Inc. (NASDAQ:AAPL)’s WWDC this year. He believes the main focal point of the conference this year is the redesigned iOS. He also says the iRadio streaming music service so many people are expecting this year is “more of a feature” rather than a “measurable opportunity.”
Apple’s WWDC By The Numbers, According To Munster
Munster believes there’s a 90 percent chance that Apple Inc. (NASDAQ:AAPL) will release a redesigned iOS at WWDC 2013. Like others, he notes that this will be the first new product to be released under the control of Jonny Ive. He also said that this is the first redesign of iOS in seven years. He thinks that the overhaul is much needed right now and that “the risk of doing nothing is greater than the risk of disrupting the winning iOS formula.
He sees an 80 percent chance of Apple Inc. (NASDAQ:AAPL) releasing an iRadio music service that’s supported by ads. He sayst the company “has a golden chance” to leap into this market because there are currently more than 500 million active iTunes accounts. That’s compared to Spotify, which has almost 30 million and Pandora Media Inc (NYSE:P), which has70 million active users.
According to Munster, if the iRadio service were to bring revenue that’s comparable to that of Pandora in the 2014 calendar year, that would add about .5 percent to Apple’s overall revenue. He said the service would also go a long way toward making up for the Apple Maps fiasco and Mobile Me.
Other Possibilities For Apple’s WWDC
He also believes there’s an 80 percent chance Apple Inc. (NASDAQ:AAPL) will release a new Maps app and also update Siri. Smaller expectations for WWDC include a 40 percent chance of a new Macbook Air, a 20 percent chance of the iPhone 5S and Digital Wallet and a 10 percent chance of the unveiling of an App Store for Apple TV.
This morning Munster has reiterated his overweight rating and $655 price target for shares of Apple Inc. (NASDAQ:AAPL)
From Other Sources: Apple’s Expected iOS Enhancements
The Wall Street Journal’s Jessica E. Lessin reports that sources say iOS 7 will include not only a completely revamped look which moves away from features which look like everyday objects (a.k.a. skeuomorphic designs), but also new ways for users to share videos and photos. If you remember, a new patent application from Apple Inc. (NASDAQ:AAPL) was unveiled recently which indicated a process for easier wireless data transfer capability.
She also agrees with Munster in saying that the company will announce its iRadio service. Other possibilities include new laptops and an upgraded Mac operating system.