Apple Inc. (NASDAQ:AAPL) presented its new products during its annual Worldwide Developers Conference (WWDC) yesterday. The participants in the event and consumers may find the iOS 7, iTunes Radio, and the latest versions of Mac OS X Mavericks, MacBook Air, as well as the Mac Pro appealing, but investors are unlikely impressed, according to an analyst.
JPMorgan’s Comments On Apple’s New Products
JPMorgan analyst, Mark Moskowitz commented that the new products of Apple Inc. (NASDAQ:AAPL) seemed to appear remarkable, but he thinks that its impact may not be strong enough to lift the sales growth or the stock price of the company.
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In a note to investors, Moskowitz emphasized, “We do not expect investors to cheer the latest software and services rollouts at Apple Inc. (NASDAQ:AAPL)’s WWDC 2013. The tech improvements appear to be suitably impressive, but we do not expect them to move the needle in the model in the near to mid-term. The new specs reinforce, however, Apple’s enhanced user experience, in our view, but the bigger story remains whether or not Apple Inc. (NASDAQ:AAPL) can jumpstart its revenue growth profile.”
According to Moskowitz, the turning point for the sales growth of Apple Inc. (NASDAQ:AAPL) in the second half of the year is the release of the iPhone 5S, lower-cost iPhone, and a Retina Display iPad Mini.
The analysts also perceived positive aspects on some of the new offerings of Apple Inc. (NASDAQ:AAPL) such as the iOS 7 with a cleaner look, better browser, and improved multi-tasking feature. He thought that the Control Center, automatic app updating, and new activation lock are positive factors. He also believed that the iTunes Radio could provide additional service revenue for the tech giant.
Canaccord Genuity’s Comments on Apple features:
On the other hand, Michael Walkley, analyst at Canaccord Genuity was impressed with some of the updated features released by Apple Inc. (NASDAQ:AAPL) such as the iCloud, Siri, Safari, and Photos App and the improvement in the battery life and the faster performance of the Wi-Fi connectivity of the MacBook Air and Mac Pro. However, Walkley believes that the tech giant will not experience immediate revival.
Walkley said, “While we were impressed with the features introduced in iOS 7 and with the refreshed MacBook Air and Mac Pro products, these announcements were consistent with our expectations. While our surveys indicate Apple Inc. (NASDAQ:AAPL)’s iPhone has lost near-term market share that will likely continue through the summer or until the iPhone 5S launch late in the September quarter, we maintain our belief Apple Inc. (NASDAQ:AAPL) has a strong product pipeline that should result in reaccelerating [year-over-year] earnings growth during [the second half of] 2013.”
Raymond James on Apple iOS 7:
Meanwhile, Tavis McCourt and Daniel Toomey, analysts at Raymond James believed that the iOS 7 closed the gap on the advantages competing operating systems and the new apps and features released by Apple Inc. (NASDAQ:AAPL) would drive further incentive to encourage its consumers to remain using its devices. The analysts noted that the iOS 7 has “distinct and differentiated bells and whistles,” and the company found a new pitch man-Craig Federeghi who demonstrated his ability to connect with developers and build excitement over new features.
McCourt and Toomey still believe that Apple Inc. (NASDAQ:AAPL) is still a “growing, but slowing company.” The analysts added, “We believe growth will re-accelerate when its customer base finds a new iPhone worthy of an upgrade more than the iPhone 5 has been or when Apple Inc. (NASDAQ:AAPL) enters new product categories.”