Apple’s Expectations at WWDC: Insights from Goldman Analyst

AAPL Stock

As Apple (AAPL:NSD) prepares for its highly anticipated Worldwide Developers Conference (WWDC) starting on June 5, investors and tech enthusiasts eagerly await news about the company’s latest developments. Goldman Sachs analyst Mike Ng has shared his expectations for the event, including the anticipation of an operating system (OS) update that aims to reduce installed base churn. In this post, we explore Mike Ng’s insights and the potential announcements that Apple might reveal at WWDC.

 

OS Updates to Strengthen the Ecosystem:

According to Mike Ng’s note, Apple is likely to announce various updates to its OS during WWDC. These updates are expected to encompass enhancements in security, performance, and product improvements. While Ng does not anticipate any groundbreaking updates that would drive significant market share gains, he believes the announced improvements will strengthen Apple’s ecosystem and contribute to reducing installed base churn. The goal is to provide users with a seamless and enhanced experience across Apple devices.

 

New MacBooks and Mixed-Reality Headset:

In addition to OS updates, Mike Ng expects Apple to unveil new MacBook models at WWDC. Specifically, he mentions the possibility of a 15″ MacBook Air being introduced. This anticipated release could potentially ignite an upgrade cycle and boost demand for Apple’s laptops, driving improved PC demand in the market.

Furthermore, there are speculations that Apple might provide insights into its mixed-reality headset. While the augmented reality/virtual reality industry has faced challenges in delivering on its promises, analysts believe Apple’s vast installed base of billions of devices and its established developer ecosystem gives it a unique advantage for success in this space.

 

Analyst Outlook and Apple’s Performance:

Mike Ng remains bullish on AAPL stock and has set a price target of $209, suggesting a 19.1% upside potential from current levels. Apple has already experienced a remarkable year-to-date gain of over 35.41% due to robust iPhone demand, achieving a new sales record of $51.3 billion in the March quarter. The company’s Q2 results exceeded expectations, with a top line of $94.8 billion and all-time high services revenue.

Apple’s strong performance is attributed to its large installed base of devices, steady iPhone demand, growing service revenue, and the mitigation of supply chain challenges. However, analysts exercise cautious optimism due to prevailing economic uncertainties.

AAPL Ratings by Stock Target Advisor

Analyst Consensus and Price Target:

Based on the recommendations of analysts, Apple holds a Strong Buy consensus rating. Out of the 21 analysts covering AAPL stock, 16 recommend buying, four suggest holding, and one advises selling. The average price target of $181.70 implies a potential upside of 3.57% from the current levels.

AAPL Ratings by Stock Target Advisor

Conclusion:

As WWDC approaches, Apple fans and investors eagerly await the company’s announcements. Analyst Mike Ng anticipates an OS update aimed at reducing installed base churn, alongside potential releases of new MacBooks and insights into Apple’s mixed-reality headset. With a solid year-to-date performance, strong financials, and a cautiously bullish consensus among analysts, Apple’s presence at WWDC is expected to provide further insights into the company’s future growth and innovation.

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