Apple Executive Talks At Code Conference & Other Tech Stories JP Morgan Is Watching
In a report published Thursday, JP Morgan analyst Rod Hall detailed four tech related stories he is following.
Apple's Jeff Williams Talks Apple Watch, Car Rumors
Apple Inc. (NASDAQ: AAPL)'s Operations Chief Jeff Williams recently spoke at the Code Conference. The executive described Apple Watch demand as "fantastic" and confirmed the company will release at the start of the WWDC event a develop kit that will allow companies to write apps for the Watch.
Williams also hinted that Apple has an interest in the automotive market. Specifically, he said "the car is the ultimate mobile device" and added "we're exploring a lot of different markets."
According to Hall, this event has a "neutral impact" for Apple.
Related Link: Apple's China Footprint...In 10 Charts
EU Plans Cross-Border Rules
Hall noted that the European Commission is proposing mandatory rules that would force companies pay taxes to all the countries in which they generate a profit. The commission is considering the introduction of a Common Consolidated Corporate Tax Base that would force companies to consolidate their P&L across the European Union.
"We view this as a combination of the tax investigation involving Apple," Hall wrote. "The fact that this is now an EU wide overhaul may not eliminate the ongoing investigation of Apple's Irish tax structure in our opinion."
According to Hall, this event has a "slight negative impact" for Apple and a "negative impact" for Cisco Systems, Inc. (NASDAQ: CSCO).
Pay-TV Market Faces ‘Strong Headwinds'
Hall cited ISH Technology who noted that the overall pay-TV market continues to face strong headwinds. U.S. cable companies improved on normal quarter losses in the first quarter, losing only 132,900 subscribers since the fourth quarter 2014.
Many pay TV operators have already "seized" the initiative to attract non-pay TV households with the launch of DISH Network Corp (NASDAQ: DISH)'s Sling TV and customizable packages from Verizon Communications Inc. (NYSE: VZ) and "cord-cutter" packages at Cablevision Systems Corporation (NYSE: CVC).
Nokia To Acquire Eden Rock
Finally, Nokia Corporation (NYSE: NOK) has signed an agreement to acquire Eden Rock Communications, a pioneer in SON and creator of Eden-NET.
According to Hall, the acquisition has a "neutral impact" for Nokia.
Latest Ratings for AAPL
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