Why Investors Shouldn't Pay Much Attention To Apple's WWDC? Sanford Bernstein's Tony Sacconaghi Explains

While most analysts are paying close attention to Apple Inc. AAPL’s Worldwide Developers Conference 2015, Sanford Bernstein analyst Tony Sacconaghi doesn’t expects much from it.

Sacconaghi was on CNBC recently to discuss why he has low expectations from the event.

Won’t Hold My Breath

“It’s called the Worldwide Developers Conference because it’s really is oriented towards Apple’s developers,” Sacconaghi said. “It’s a multi-day event and this is the key note in which there are typically software introductions, but in terms of materiality if you look back over the last several years, this is not the forum where we typically get any kind of meaningful new hardware product.”

He continued, “And so, I do think we will get a music streaming service, we will get a bunch of software updates. I think, importantly we will get a developer’s kit for the Watch, but beyond that I wouldn’t be holding my breath.”

TV Service, But Not An Actual TV

Sacconaghi was asked if he thinks that Apple will ever launch an actual television set. He replied, “I don’t believe so. I think we will get a television service. I don’t expect it at this event. I think, we will potentially get upgrade capability from the Apple TV box or have that as a cloud based service, but I struggle to see why Apple would actually want to manufacture a television.”

“Historically, television margins have been really low. It’s a hyper-competitive industry. If you think about Apple just merchandising in its store [the] small item like an Apple Watch really forced Apple to re-think how it merchandises within its stores. If you bring in 50, 60, 70-inch televisions that pushes it one step further,” Sacconaghi concluded.