Wall Street views on Apple Inc. are very confusing, believes Jim Cramer of CNBC. On Squawk on the Street on Tuesday, a day after the company’s annual Worldwide Developers Conference began, Cramer said Wall Street’s analysis of Apple Inc. (NASDAQ:AAPL) is kind of “oxymoronic.”
Wall Street views on Apple (AAPL) confusing
“I think that one of the things that happens with Apple is, it’s universally considered to be boring and past its prime that, when they issue things, I’m looking and I’m saying, ‘boy, I want that, but it’s past its prime,’” Cramer said.
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At this year’s WWDC, Apple unveiled of the newest iPhone operating system, a rebooted Apple Music, and new capabilities for the Apple TV. Cramer said all the things released at WWDC had too many articles about them, and after reading them, he felt the market will not like them.
“The disconnect between all the great things that Tim Cook is up to versus how we are yawning is funny,” he sarcastically said.
Key takeaways from AAPL’s WWDC
Bernstein analyst A.M. (Toni) Sacconaghi explained his takeaways from WWDC. The analyst noted that most of the announcements from Apple appeared to be playing a catch up versus competitive offerings or were attempts by the company to close the gap on shortcomings within existing offerings.
Sacconaghi said the level of software and services integration within and across Apple’s hardware products improved notably. The analyst believes it will genuinely bring improvement in the user experience and strengthen platform loyalty or at least mitigate defection.
Apple Inc. (NASDAQ:AAPL) is currently focusing on the seamless integration of its various services. The iPhone maker used 3D Touch control to enhance notifications. Maps and iMessage will provide materially incremental functionality and allow extensions/access to third-party apps without the need to leave the app, the analyst notes.
Apple’s integration, aptly referred to Continuity, includes new features such as auto-unlock, which unlocks a Mac when someone approaches it with an Apple Watch. It also offers the ability to sync desktop and documents across devices and cross-platform cut and paste (Universal Clipboard).
Opening up Siri, iMessage and Maps to developers suggests the company views each of these services as strategic platforms going forward and indicates that it feels it can compete more effectively by adding extensions to developer offerings, Sacconaghi explains.
On Tuesday, Apple Inc. (NASDAQ:AAPL) shares closed up 0.12% at $97.46. Year to date, the stock is down by over 9%, while in the last year, it is down by over 23%.