Apple Inc. (AAPL) Services “Key To An Apple Rebound”

Apple Inc. (AAPL) Services “Key To An Apple Rebound”
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Apple Inc. (NASDAQ:AAPL)’s services and software will be an important factor in the company’s success this year according to analysts from Barclays. They believe that in order for Apple to stay ahead of its competitors this year, it must focus on innovation in data and web. Today Apple Inc. (NASDAQ:AAPL) investors are looking ahead to the company’s earnings report tomorrow with positive expectations. The stock rose almost 1 percent in pre-market trades this morning and continued rising after the opening bell.

Apple Inc. (AAPL) Services “Key To An Apple Rebound”

In a report issued to investors this morning, Barclays analysts said they believe the key to Apple Inc. (NASDAQ:AAPL)’s continued success is going to be updating its ecosystem. They point out how investors in September dumped shares of Apple after its disastrous mapping software was released as part of iOS 6. That indicated just “how valuable” the technology developed by Google Inc (NASDAQ:GOOG) was, so now Apple must respond with better technology.

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Barclays analysts say they expect to see indications of updates to the iOS ecosystem in previous of iOS 7, which are expected as early as March, possibly during a launch event for an updated iPad. By June the new version should be put into action. They also believe that the company can move into the payments sector thanks to technology it acquired from Authentic. In addition, they expect iOS to move into television and subscription-based services, which they see as essential for the company’s success this year.

In terms of hardware, they believe Apple Inc. (NASDAQ:AAPL) will launch both a larger iPhone with a bigger screen and a less expensive model for emerging markets. However they shift investors’ focus back to iOS updates, saying they believe “new services could help Apple’s multiple recover by 2 points rather quickly, equating to about a $100 move.”

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