Jefferies Maintains Buy on Apple (AAPL) Following WWDC; Sees iMessage as Potential RIM-killer

Jefferies made some comments on Apple, Inc. (Nasdaq: AAPL), following the Keynote address by CEO Steve Jobs at WWDC yesterday. The firm has a Buy rating and $500 price target on the stock.

Jefferies notes that the speech delivered as expected, focusing on "software and cloud services with mostly me-too capabilities announced." The firm expects "this to be Apple's first round of cloud service announcements with round two in the Fall (likely focused on video) and round three in 2012."

For Research In Motion (Nasdaq: RIMM), Jefferies thinks that iMessage is a negative factor. Anyone with an iPhone, iPad, or iPod touch will be able to send unlimited free text messages to anyone else using an iOS device. Jefferies comments that "The two mainstays of RIM's sales have been corporate email users and consumer BBM (Blackberry Messenger) users. While Apple lacks RIM's NOC/node infrastructure that allows for BBMing without a data plan with some carriers, iMessage otherwise is a direct competitor." Apple's launch of a lower-cost iPhone in the Fall will only bolster this argument, the firm contends.

Apple didn't refer to iTune Match as "steaming," probably for legal reasons. The service will cost $25 per year.

Jefferies initially believed that iOS 5 woudln't be on the iPhone 3GS. The firm took away several key points from this announcement. Positives: 1) maintains the unity of the Apple iOS code base, 2) Likely higher low-cost iPhone shipments. Negatives: likely greater cannibalization of higher-end iPhones as differentiation is lessened.

Apple reported shipping 25 million iPads to-date, implying 7.6 million in the quarter. Jefferies was looking for about 8 million. However, the back-end loaded production ramp leaves Jefferies to believe that the figure is in-line with their estimate.

On Apple's iCloud, which Jefferies believes is "me-too" so far: "documents, photos, and music in the cloud are similar to Amazon's (Nasdaq: AMZN) and Google's (Nasdaq: GOOG) services though Apple's Photo Stream is more automatic in its uploading and distribution of photos. Also, the service includes synchronization of calendar,contacts, and mail."

For more analyst comments on Apple, click here. For more a ratings history on AAPL, click here.

Apple is trading slightly higher pre-market.

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