) has strongly protested against claims that its iCloud service was
under a hacking attack. Recently, private photographs of
celebrities like Hollywood actor Jennifer Lawrence were leaked on
the Internet, which resulted in a public furore over Apple iCloud's
It was alleged that hackers were successful in breaching iCloud.
However, Apple denied all such allegations and said that the
incident was the result of the hacking of individual accounts and
that the other accounts on iCloud remained safe. Currently, the
Federal Bureau of Investigation (FBI) is investigating the matter.
Apple's iCloud service enables users to store photos and other
content, which can be accessed from any Apple device. However, as
with all cloud and web-based services Apple's iCloud have been
prone to cyber-security issues. Post the leak of private
Apple has asked its users to use strong passwords at the time
accessing their accounts.
Moreover, Apple also ensured availability of a two-step
verification process to access the accounts. This process is
already followed by the likes of Google (
) Facebook (
) and Twitter (
We believe that allegations of privacy breach just a week before
the Sep 9 event will be a concern for Apple. The company is
expected to launch iPhone 6 on that date. It is also rumored that
Apple may likely unveil its anticipated wearable device at the same
However, both iPhone 6 and the wearable device touted as iWatch are
expected to extensively use iCloud services. iPhone 6 is also
rumored to offer Near-field Communication technology (NFC) that
will enable payments by touch. iWatch is rumored to have the
capability to collect and share health-related data, which will
further increase the amount of private information stored with
Although Apple's iCloud is considered to be one of the best secured
data repository, the recent allegation tarnishes its reputation. We
expect Apple to be more cautious in protecting the personal
information of its users and devote more resources in that respect
Currently, Apple has a Zacks Rank #3 (Hold).
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