At the ongoing annual Worldwide Developers Conference,
) unveiled its much anticipated music-streaming service iRadio.
Apple also showcased the newly revamped iOS 7 in the ongoing
conference, which has a simpler user interface and offers a lot
of new features.
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The iRadio service is designed along the lines of the competing
) service, which allows users to create stations based on songs
of their choice (including Twitter trends) which they can also
share with friends.
The service offers more than 200 free stations primarily
supported by brand advertisements. However, for Apple's existing
cloud-based music service (iTunes Match) subscribers, iRadio is
totally advertisement free.
Additionally, iRadio offers cross-platform features, which allow
access to users of other platforms such as Pandora and
) All Access. Apart from close integration with iTunes, iRadio
will also be available on newly launched OS X and Apple TV
Apple has closely integrated Siri with iRadio, which will allow
users to easily navigate through songs by using voice command.
Apple also introduced a number of improvements to Siri, which
will now come with a new interface, new voice (both male and
female options) and feature Twitter integration.
An important update to Siri is the addition of French and German
language options. Apple announced that Siri will now use
) Bing for search queries. Apple is also planning to bring iOS
into cars by the end of next of year.
Besides iOS-related updates, Apple also unveiled the new Mac OS X
Mavericks, which offers significant improvement in terms of power
consumption, efficiency and integration with iOS based devices.
The company also introduced iWork for iCloud in the conference,
which allow users to work on documents in a browser on either Mac
Apple also provided a glimpse of its upcoming desktop Mac Pro,
which is a black, cylindrical device that includes 12-core Intel
Xeon processors and its internal storage, is based on high speed
flash memory. The device will be assembled in the United States
and is expected to release later this year.
Apple launched new MacBook Airs, which promises improved battery
life and supports 802.11 ac, a faster version of wi-fi. The
device runs on Intel's Haswell processor and features new Airport
Traditionally, Apple has used the Worldwide Developers Conference
("WWDC") platform to launch new services, hardware products and
software. Although nothing exceptional was announced this year,
Apple's entry into the Internet-radio market is worth mentioning.
In this regard, we note that Pandora ranks #3 among the top
grossing apps in Apple's App store and enjoy a first mover's
advantage in the music streaming industry. Therefore, Pandora's
already popular service (approximately 70.1 million users) driven
by its effective discovery engine and well established
infrastructure will provide significant competition to Apple in
the near term.
Additionally, we believe that the lack of new surprises (iWear
and iTV) and absence of new iPhone/iPad details has left very
little to cheer about this years WWDC conference. We believe that
the lack of new innovative products will remain an overhang on
Apple's share price in the near term.
Currently, Apple has a Zacks Rank #4 (Sell).