What Maynard Um, Brian White Are Expecting From Apple's WWDC

Since Apple Inc. AAPL became the highest valued company in the world with a $741.16 million market cap, analysts and investors have been following the company’s every move. This week, it looks like reports have focused on the release of the iPhone 6 series and Apple Watch.

After the huge success of the launch of the iPhone 6 and iPhone 6 Plus, Apple fans have been speculating when Apple will release the iPhone 6s. Now, it seems that consumers can stop speculating as UK mobile carrier Vodafone leaked an email from Apple revealing the phone will be available for pre-orders on September 18 and will go on sale on September 25.

Despite the excitement buzzing about the iPhone 6s, Wells Fargo analyst Maynard Um does not see the phone’s gross margins expanding larger than the original iPhone 6. On June 5, Um reiterated a Market Perform rating on Apple, citing that the iPhone 6s cycle may “not see a meaningful uplift to gross margin.” Furthermore, the analyst thinks the new iPhone 6S “may see greater gross margin pressures vs. iPhone 6, which benefited from the 6+ ASP lift and mid-range 64GB mix shift.” Um remains wary and notes, “6S cycle could see a slowing on a units per carrier basis.”

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On average, Maynard Um has a 59 percent success rate recommending stocks and a +12.1 percent average return per recommendation.

On the other hand, there has been a lot of excitement around the Apple Watch since it launched in April. The Apple Watch drew a lot of attention as the first new original product released under Tim Cook as CEO. Demand for the Apple Watch has been substantially high as the company sold out of each unit just six hours after it was available for pre-order. Apple recently announced that Apple stores will have new watches available in the next two weeks and that they will be made available in seven new countries, including Italy, Mexico, Singapore, South Korea, Spain, Switzerland, and Taiwan.

Cantor Fitzgerald analyst Brian White was “pleased with [the] announcement that Apple Watch will launch in another seven countries on June 26 and become available in Apple retail stores in two weeks.” Maintaining a Buy rating on the stock with a $195 price target on June 4, the analyst continues to be optimistic and believe, “Apple Watch will prove to be the best selling new product in Apple’s history (within first 12 months).”

Brian White has an overall success rate of 73 percent recommending stocks and a +18.5 percent average return per recommendation.