What to Look for at Apple's (AAPL) WWDC - Goldman Sachs

Goldman Sachs analyst Rod Hall reiterated a Neutral rating and $130.00 price target on Apple (NASDAQ: AAPL) ahead of Apples World Wide Developer Conference taking place this week. While there are many things that could impact financials for the company, this forum has been less impactful for general business announcements than others in the past. That said, Goldman does expect two hardware announcements that could impact profit growth:

1) New M-series chipped Macbook Pro machines are expected this year but the impact would likely be small since Mac Revenue is expected to account for 10% of the top line going forward.

2) Substantial iPadOS updates are expected this year and could push the platform more in the direction of PC competitors. The analyst believes that if this were to happen, and apply to lower priced iPads, it might open up some new market opportunities at price points below $1,000.

Less likely but impactful announcements could revolve around

• App Store commentary given the EPIC case and ongoing regulatory interest
• Home automation technology since the company the has, so far, only addressed it partially via Homekit, AppleTV and Homepod.
• Search since Apple has a large exposure to payments from Google for search (TAC), which contrasts with Apple’s push toward increased user privacy through the rollout of ATT (App Tracking Transparency).
• Health platforms since Apple is in possession of substantial health data for users, particularly for Apple Watch owners. Potential monetization of this could be impactful.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $125.89 yesterday.

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