In addition to the update on the the MacBook Pro, Apple is rumored to be improving upon all of their Mac computer lines with a potential exception to either the Power Mac or the Mac Mini. Finally, they are expected to improve on their line of accessories, including their keyboard, mouse, and airport products.
While the iPhone 5 is rumored to not come out until October, an updated iOS will be improved with an iOS 6. The new iOS will allow for more photo and link sharing, as well as a potential marriage between Facebook and Apple. Additionally, Siri software should be updated and expanded to the iPad. The Siri software came out to great fanfare but was a critical flop among consumers who cite its lack of capability and slow speed as major concerns.
Now, the question of the day is what will happen to Apple’s stock post WWDC. Looking at previous announcements of the same products, Apple’s stock has improved consistenly near 2% from the week before each announcment to the week after it. However, as over 42% of Apple’s business comes from the iPhone and less than 6% comes from their Mac computer business, the impact of an improved product on Apple’s bottom line will be less than a new iPhone. Moreover, the Mac growth has been incredibly slow, yet steady, over the course of its product lines. So will Apple (AAPL) improve next week? Possibly, but unless Tim Cook wows the crowd, don’t expect a major market movement.
UPDATE 6.11.2012: Well everyone, the WWDC went exactly according to plan. As predicted, Apple announced an updated MacBook Pro, iOS 6, and a new operating system for their mac computers. While Apple has improved their product line, it comes as no surprise to KOTM that their stock fell after the annoucement through current after market trading. Without a major iPhone annoucement, the conference lacks substantial “wows.” As such, I’ll chalk Apple’s stock to the classic, “Buy on the rumors, sell on the news” strategy.
Thomas Doherty is a student at Villanova University majoring in Finance and Economics. All questions and comments can be sent to Thomas@KeeneOnTheMarket.com