WWDC 2022 keynote was a showcase of Apple innovation, Katy Huberty says

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in AAPL Investors
Apple's WWDC 2022 announcements underscore that it's working toward a "unmatched" and "unreplicable" user experience, according to Morgan Stanley

Apple WWDC
Apple WWDC


In a note to investors seen by AppleInsider, Morgan Stanley analyst Katy Huberty writes that Apple's innovation engine was at full throttle during the WWDC 2022 keynote.

The operating system updates were expected, but Huberty notes that the increased focus on tighter integration and cross-platform functionality could help drive share gains in end markets, which she believes is sustainable.

Additionally, the analyst says that Apple's financial and health features are proof that it's continuing to expand its footprint in its existing verticals. Some of its new features in those ares include sleep tracking, Afib history, and Apple Pay Later.

There were two surprises at WWDC 2022 for Huberty. One of them was the fact that Apple released a refreshed 13-inch MacBook Pro with its updated M2 chip along with the overhauled MacBook Air. The other was the lack of VR/AR announcements or privacy updates.

However, Huberty notes that the CarPlay tease could be a potential preview of Apple's self-driving car development. Although potentially not directly related, the customization and integration options could be a small taste of what's possible on an "Apple Car," the analyst said.

"[The] WWDC keynote once again brought out what we believe is the most compelling characteristic of the company - Apple's deep focus on in-house hardware and software innovation combined with an increasing set of features that allows Apple's platform of products and services to function more uniformly, ultimately providing an unmatched, and unreplicable, user experience," Huberty writes.

Innovation like that will come at a cost -- the analyst believes Apple will spend $24 billion on R&D over the next three years. However, she believes Apple's R&D has contributed to sustainable growth in Apple's installed base of active devices.

Huberty is maintaining her 12-month Apple price target of $195. The target is based on an implied price-to-earnings multiple of 30.3x on a 2023 earnings-per-share estimate of $6.43.

Read on AppleInsider

Comments

  • Reply 1 of 16
    jas99jas99 Posts: 122member
    “… providing an unmatched, and unreplicable, user experience.”

    Apple does things no other company can do. 

    It has no competition. 
    watto_cobra
  • Reply 2 of 16
    mpantonempantone Posts: 1,939member
    Apple has plenty of competition. Go read their SEC filings, you'll find them admitting it themselves.
    watto_cobra
  • Reply 3 of 16
    BeatsBeats Posts: 3,073member
    Those Apple dashboards were beautiful. I wish Apple Car was announced already!
    watto_cobra
  • Reply 4 of 16
    ravnorodomravnorodom Posts: 580member
    Very overwhelming Keynote. I was expecting 1 hr only.
    Beatswatto_cobra
  • Reply 5 of 16
    mpantonempantone Posts: 1,939member
    Very overwhelming Keynote. I was expecting 1 hr only.
    Apple marketing keynotes are generally about 90 minutes long.

    Two hours for a developer-targeted keynote isn't unusual.

    Guess which one happened yesterday.
    Beatswatto_cobra
  • Reply 6 of 16
    waveparticlewaveparticle Posts: 1,136member
    Apple innovation helps world living better and more efficient. This is real economy not bubble. 
    watto_cobra
  • Reply 7 of 16
    crowleycrowley Posts: 10,453member
    Thought it was a bit dull myself, nothing very surprising, the expected things were as expected and the things that even qualify as surprising (e.g. CarPlay 2) weren't very interesting.  iOS 16 and macOS Ventura barely even qualify as updates for me there's so little of use there.

    Everything seems to have stagnated a bit while rumours about realityOS and cars are setting ridiculous expectations.
    darkvader
  • Reply 8 of 16
    JWSCJWSC Posts: 1,202member
    crowley said:
    Thought it was a bit dull myself, nothing very surprising, the expected things were as expected and the things that even qualify as surprising (e.g. CarPlay 2) weren't very interesting.  iOS 16 and macOS Ventura barely even qualify as updates for me there's so little of use there.

    Everything seems to have stagnated a bit while rumours about realityOS and cars are setting ridiculous expectations.
    I felt the same.  Watched 2-3 minutes of the MacBook Air intro and then all of Jony Srouji’s M2 intro, which was the most interesting part but kind of short.  Fast wound through the other stuff.  Great stuff I’m sure.  But I didn’t have the stamina or will to watch it all the way through.  First time that happened.
    darkvader
  • Reply 9 of 16
    JWSCJWSC Posts: 1,202member
    And I’m really not digging the ‘trying to be too young and too cool’ emojis they have been using as of late.  Maybe it’s a generational thing.  But those emojis have an ‘ick’ factor that’s hard to shake.  it seems to be appealing to a rather small slice of the overall Apple user and coder base.
    darkvader
  • Reply 10 of 16
    avon b7avon b7 Posts: 6,515member
    jas99 said:
    “… providing an unmatched, and unreplicable, user experience.”

    Apple does things no other company can do. 

    It has no competition. 
    Apple has plenty of competition.

    Cars? 

    https://www.gsmarena.com/aito_m5_harmonyos_system_quick_review-news-54285.php

    https://digitalpower.huawei.com/en_US/DriveONE/

    https://www.huawei.com/us/technology-insights/publications/huawei-tech/86/driverless-vehicles-with-mdc

    https://www.huawei.com/us/news/2021/9/huawei-ar-hud-iaa-mobility-2021

    That is just a tiny splattering of the technologies involved in computerised cars. 

    It's a bit more involved than just having better CarPlay support so deeper integration is obviously key here. You can do that by partnering and/or rolling your own but saying Apple doesn't have competition is incorrect. 
    edited June 2022
  • Reply 11 of 16
    entropysentropys Posts: 3,793member
    Thing is, car companies must realise that UI is done better by Apple and Google.

    teehrnthing is that was a technology preview that is a couple of years away. Not something Apple usually does.  
    And my thought was the oppositie of Huberty’s though: rather than a car of its own, all that apple car work is actually setting themselves up to be the ultimate car interface, regardless of car brand. Just like carplay replaces the cars entertainment system, it wil, replace all the interface.

    and it doesn’t rule out an apple car in the end if the car companies don’t come on board.

    personally, I doubt car companies will give all that up.
    watto_cobra
  • Reply 12 of 16
    darkvaderdarkvader Posts: 960member
    Oh look, it's this Apple Car crap again.

    There isn't going to be one, not for at least a decade if ever.  Apple isn't a car company, and has absolutely no idea how to build a car.  They're screwing around with self-driving AI, but they're doing very badly at it.  They have no factories, and it's not like you can just call up Foxconn and have them build one like they do with computers.
    ravnorodom
  • Reply 13 of 16
    AI_liasAI_lias Posts: 430member
    Imagine handing over control of your car to a company that purposefully cripples the MacBook Air external monitor outputs to just one monitor, in order to upsell people to Pro products which are overkill for them. No.
  • Reply 14 of 16
    ravnorodomravnorodom Posts: 580member
    entropys said:
    Thing is, car companies must realise that UI is done better by Apple and Google.

    teehrnthing is that was a technology preview that is a couple of years away. Not something Apple usually does.  
    And my thought was the oppositie of Huberty’s though: rather than a car of its own, all that apple car work is actually setting themselves up to be the ultimate car interface, regardless of car brand. Just like carplay replaces the cars entertainment system, it wil, replace all the interface.

    and it doesn’t rule out an apple car in the end if the car companies don’t come on board.

    personally, I doubt car companies will give all that up.
    Car companies don't want to deal with Apple's controlling executives and licensing. They would rather copy UI and make it their own even it sucks big time. Plus they don't need Apple. It's Apple who needs them.
    edited June 2022
  • Reply 15 of 16
    michelb76michelb76 Posts: 454member
    Beats said:
    Those Apple dashboards were beautiful. I wish Apple Car was announced already!
    I hope that never ends up in a car, unless it has no steering wheel and is FSD. It's one of the worst designed dashboards I've seen in a while. Way too many distractions and useless info. I'm guessing it's just a concept or 'talk piece'.
  • Reply 16 of 16
    michelb76 said:
    Beats said:
    Those Apple dashboards were beautiful. I wish Apple Car was announced already!
    I hope that never ends up in a car, unless it has no steering wheel and is FSD. It's one of the worst designed dashboards I've seen in a while. Way too many distractions and useless info. I'm guessing it's just a concept or 'talk piece'.
    It reminded me immediately of the dashboard in an EQS. 

    watto_cobra
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