Apple, Inc.'s (NASDAQ:AAPL) annual Worldwide Developers Conference kicked off on Monday with a keynote address, wherein the company announced several new features for the operating systems that drive its hardware products. The company also unveiled a new MacBook Pro.
Apple analysts came away from the event largely positive.
Munster's Key Takeaways: Although there were no headline-grabbing announcements, Apple's WWDC keynote delivered, highlighting the company's ability to innovate around vertically-integrated hardware and software, Loup Funds Managing Partner Gene Munster said.
The analyst sees the CarPlay overhaul, tighter OS integration, Apple Watch announcements and the new MacBook Air as his key takeaways from the event.
The CarPlay will be more than map and media, and will power the entire instrument cluster, the analyst said. The user interface, according to the analyst, is equally- to more-visually appealing than that of Tesla, Inc. (NASDAQ:TSLA).
"Today's announcement underscores a simple fact: legacy auto needs Apple," Munster said.
On Apple Watch, the company announced that its Afib monitor will get the Food and Drug Administration's Class II designation, the analyst noted.
"When Apple gets FDA Class II device approval, it can then be leveraged for clinical purposes as well," the analyst said.
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Munster noted that the new MacBook Air with the new form factor and the M2 chip comes with a 20% price hike, more than enough to cover for the component price increases. The analyst expects the new product to help keep Mac sales growth close to 5% in the next year despite tough comps.
The option to unsend or edit an iMessage is a very useful option, the analyst said. He also noted that the improved focus filters will likely help limit distractions.
Munster sees Apple rivaling Affirm Holdings, Inc. (NASDAQ:AFRM) with its "Apple Pay Later," and posing a threat to Zoom Video Communications, Inc. (NASDAQ:ZM), as "Free Form" group board environments get added to FaceTime later this year.
City Experiences added to Apple Maps give it a richer UI, the analyst said. Apple can differentiate from the more popular Alphabet, Inc. (NASDAQ:GOOGL) (GOOG)-owned Google Map with the use of Augmented Reality, he added.
"Putting it together, Apple is moving on making great hardware, software and services and continues to keep the doors open for growing large new business in AR, auto and health," Munster said.
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WWDC Is Interesting Around Privacy, Payments, KeyBanc Says: Overall, WWDC isn't a needle-mover for Apple, although announcements out of the event serve to increase product functionalities and, in turn, consumer utility, KeyBanc analyst Brandon Nispel said.
WWDC gets more interesting for derivatives around privacy and payments, he added.
With Apple not explicitly mentioning fingerprinting and the improvements announced in the SKAdNetwork, advertisers can heave a sigh of relief, Nispel said. The combination of first-party platform tools and a more robust SKAdNetwork, the analyst said, could help alleviate headwinds to social.
Nispel expects the Apple Pay Later launch to act as a broader catalyst for further industry growth. The company's millions of acceptance points and over 1 billion consumers are likely to elevate BNPL awareness and drive further adoption of a relatively early-stage market, he added.
Apple shares were up 0.76% to $147.22 on Tuesday, according to Benzinga Pro.
