The Apple Inc. (NASDAQ:AAPL) World Wide Developers Conference kicked off today at 10 AM Eastern time, and half the world will be tuning in to see what Tim Cook has to offer to the world this year. Wall Street is already anticipating big earnings as a result of products launched at this week’s event.
Brian White, one of the firm’s biggest fans on Wall Street, kept a $195 price target on shares ahead of today’s keynote. He says traders should watch “Planet Apple” this year, and not take the firm’s outlying arms for granted as Mr. Cook extends his reach into more and more spaces.
Software is the soul of Apple Inc.
Mr. White, who looks at Apple for Cantor Fitzgerald, sets the tone for his report with a quote from Steve Jobs, Apple’s former CEO. Mr. Jobs once said, “if the hardware is the brain and sinew of our products, the software in them is their soul.”
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“Planet Apple” is Mr. White’s own extension of that idea. It’s the rise of the Apple iPhone beyond the firm’s own hardware and out into the world. “Apple’s digital ecosystem is often under-appreciated, operating in the shadow of the company’s mobile device portfolio,” wrote White.
He sees Apple as an “ever-expanding and seamless digital matrix.” The firm’s coming power to flow through every device, be it in the home or in the car “remains a key differentiator, and we expect this will only leave more competitors behind in the coming years.”
Services are the next big step for Apple, and Mr. White, who has the highest price target on Apple this side of Carl Icahn, is looking to see that area explored a lot at this week’s event.
Apple gets into everything
Mr. White is looking for Apple to reveal Apple Music today, but says, along with the rest of Wall Street, that the firm’s TV streaming service will not be seen this time around. Instead Mr. White says that the TV service may arrive in the third quarter of the year.
Four of the central parts of WWDC for Mr. White are iOS 9, Apple Pay, the Apple Watch, and HomeKit. HomeKit is Apple’s play for the Internet of Things, Pay is the firm’s chance to get in to retail stores and wallets and the Watch is a new way for users to handle their day to day tech powers.
iOS 9 ties those three, and so much more, to each other and to a central system. That, along with the new Apple TV hardware, will be the heart and soul of “Planet Apple.”
Mr. White clearly affirms a Buy rating on Apple as the firm continues to push in many directions at once. The logic behind his advice is clear.
Tim Cook’s team will take today and show the world how Apple can be in everything in the world, and use that power to sell the “sinew” that will keep the whole thing together. The Apple TV, which the firm is set to push as a big part of HomeKit, will be the clearest statement of that.
White believes that there’s a huge amount of growth in the markets Cook is chasing, and that other firms are left far behind by Apple’s tactics and “soul.”