Apple has fed the high expectations, with promises by executives
that the company's best product pipeline in 25 years is being
readied inside its secretive facilities. That's a high bar for a
company whose hits include the modern, graphic-based personal
computer, the smartphone, the iPod and the tablet PC.
Those now ubiquitous gadgets were created under the innovative and
famously meticulous eye of Apple co-founder Steve Jobs, who died in
2011. When Chief Executive Officer Tim Cook takes the stage on
Tuesday, technology aficionados, investors and rivals will be
watching closely to see whether Jobs' handpicked successor inherited
the magic touch or whether Apple's winning streak is coming to an
end.
"We think Apple’s pipeline is finally going to satisfy those who
have wondered if the company has any new products. The stock price
has been rallying as investors are beginning to believe that Tim
Cook all along was telling the truth that there is an incredible
pipeline of products," said Michael Yoshikami, CEO of Destination
Wealth Management.
In the last five years, the period beginning July 1 has been the
most fruitful for holders of Apple shares, with an average price
gain of about 22.5 percent, compared with 11 percent gains seen in
the first half of the last five years.
Below are some of the key products and features to look out for at
Apple's big event on Tuesday:
iWatch?: Rumors of an Apple smartwatch go back several years, but
Tuesday may finally be showtime. The watch, which will reportedly
have a flexible screen and come in two sizes, will track its
wearer's health and fitness, double as an electronic wallet and of
course, display messages.
The watch is not likely to go on sale until sometime in 2015 and
Apple may not even reveal its price on Tuesday. But with rivals such
as Google Inc <GOOGL.O> and Samsung Electronics Co <005930.KS>
already entering the smartwatch market, tech-watchers are anxious
for Apple to show its cards.
"The market has been waiting for Apple’s product as the real
category-defining product," said FBN Securities analyst Shebly
Seyfari.
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iPhone 6: Smartphones are Apple's bread-and-butter, representing
more than half of its revenue, and the company is expected to
introduce a pair of new models with bigger screens, a sleeker design
and wireless payment capabilities. The iPhone 6 will be available
with 5.5-inch or 4.7-inch screens, a step up from the current
models' 4-inch screens. There is also speculation that some phones
will boast extra-tough screens made from scratch-resistant sapphire
material.
Mobile Wallet: Apple has reportedly struck deals with major credit
card providers Visa Inc, MasterCard Inc and American Express Co. The
partnerships, as well as a special communication chip within the new
iPhone and smartwatch, would allow consumers to use their gadgets at
stores to buy everything from coffee to blue jeans - changing the
shopping experience and extending Apple's reach from the Web to
real-world commerce.
Health: Apple's launch of the "HealthKit" data service earlier this
year made it clear that it sees its products helping consumers
manage personal health information. By incorporating the HealthKit
service into the iPhone 6, and by packing its smartwatch with
sensors capable of monitoring physical movements and heart rates,
Apple could lay the groundwork for a broader push into mobile
healthcare.
One More Thing? Apple's Jobs was famous for surprising fans with
unexpected products at the end of his presentations. Could Cook
preserve the tradition with a peek at a long-awaited Apple
television, a rumored bigger iPad or a completely unexpected
product?
(Reporting by Christina Farr, Alexei Oreskovic and Noel Randewich;
Editing by Bernard Orr)
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