Anticipation is building for Apple Inc.'s Worldwide Developers Conference, which kicks off June 4, where the company is expected to preview its next mobile operating system as well as other key software updates and initiatives.
Analysts predict the main attraction this year will be a preview of iOS 12, the expected name of Apple's next mobile operating system, followed by potential enhancements to the company's new HomePod smart speaker as well as various augmented reality initiatives.
GBH Insights analyst Daniel Ives predicted the event will "set the tone [for Apple software] ... over the next year," though he said there is also a slim chance that Apple could surprise by revealing a new iPhone or MacBook update. The HomePod was unveiled at the company's 2017 developers conference.
The new smart speaker device, released in February, has lagged behind more established products from Amazon.com Inc. and Alphabet Inc.'s Google, and some analysts believe an update is imminent.
"It's going to take time to develop that market for [HomePod]," said Mike Paxton, a senior analyst with Kagan, a research group within S&P Global Market Intelligence. He pointed to HomePod's higher price and more limited features compared to its peers as weighing on its consumer appeal.
Gene Munster, a managing partner at venture capital firm LoupVentures, said in a recent research note that he expects Apple to unveil expanded capabilities for Siri, including adding support for features like navigation and email, which "would quickly improve the [HomePod] experience."
To advance its smart speaker ambitions, Munster suggested that Apple integrate Siri with Beats Electronics LLC, a division of Apple that produces audio products, to offer a lower-priced alternative to HomePod.
Munster also expects Apple to introduce new augmented reality features, building on its ARKit introduced in 2017. ARKit is a software development kit that offers AR apps for iPhone and iPad. Some of ARKit's current capabilities include scene understanding, which enables the app to see and place virtual objects on vertical surfaces, as well as recognize irregularly shaped objects in real life.
A newer version of ARKit would provide developers with "subtle new ... tools to improve the AR development process and ultimately yield more compelling AR applications," Munster wrote.
Apple's stock typically sees a small lift the day before the event begins and a similar decline on the day of the event itself, according to an analysis of data going back to 1989 by Kensho Technologies. The stock movement both before and on the day of the event is typically less than 1%.
