Apple Inc. (AAPL) Shows Developers How Much More They Can Do: Walter Piecyk


Apple Inc. (NASDAQ:AAPL) showed how much more developers can do with their products and platforms, Walter Piecyk, BTIG tech & telecom analyst, told CNBC.

Piecyk noted that there is not much to comment in terms of new product announcements at the ongoing Apple Inc. (NASDAQ:AAPL) Worldwide Developers Conference (WWDC). However, he said that the iPhone maker did not fail to live up to what this event is really about: developers. The WWDC is not really an investor conference, the analyst said, adding that this fact is really apparent in how the event is set up. The company has announced the iPhone 4 during the WWDC in 2010, he noted, but has since used the event to focus more on developers.

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According to the BTIG analyst, what Apple Inc. (NASDAQ:AAPL) did during its announcement at the WWDC is to show developers what they can do with their products and their platforms. This in turn encourages developers to continue to develop for the tech giant’s products, he added.

BTIG currently has a ‘Buy’ rating for Apple Inc. (NASDAQ:AAPL)’s stock, with the target price being set at $600.

On Monday, Apple Inc. (NASDAQ:AAPL) announced a new version of its Mac OS X operating system, called Yosemite. The company also announced iOS 8, which will power its mobile products like the iPod, iPhone and iPad. Furthermore, the tech giant also announced HealthKit, a health monitoring app, and HomeKit, a home automation system. The company also revealed a feature that lets users connect their Mac computer to their iPhone in order to make and receive calls. The iPhone-maker also announced: iCloud Drive, a file storage service; new iMessage features (audio and video clips); Swift, a developer tool for easier app development; and Metal, a developer tool for 3D graphics for the iPhone and iPad.

Meanwhile, Piecyk added that it is noteworthy that Apple Inc. (NASDAQ:AAPL) is focusing on integration. The analyst said that by enabling developers to integrate more with the built in functionalities of their products, the company is trying to build more of an ecosystem. However, he did note that the tech giant is building an ecosystem with its products alone and not using a cross-platform approach, which Google Inc (NASDAQ:GOOGL) is using with their products compatible with iOS, Android and other platforms. This makes a halo effect for the iPhone-maker’s products, the analyst stated, and people will be encouraged to buy other products made by the company.

As for who should be worried about the announcements made by the company, Piecyk said that there will always be people who will be worried about what the tech giant announces. There’s Google Inc (NASDAQ:GOOGL), he said, which worries about whether people are not going directly to them for search. There are also companies that have over-the-top services like messaging, which will be worried about the iPad-maker’s new offerings.

Watch the full video below:

Among shareholders of Apple Inc. (NASDAQ:AAPL) is the activist shareholder Carl Icahn’s Icahn Capital Lp, which increased its stake in the company by 12% by the end of March to 7.54 million shares. David Einhorn’s Greenlight Capital also holds 1.99 million shares in the company, valued at over $1 billion.

Disclosure: None

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