2 Apple Stories JPMorgan's Rod Hall Is Watching

In a report published Friday, JPMorgan analyst Rod Hall commented on two

related stories he is following.

Apple's HomeKit will be getting some "great" new abilities in iOS 9, including new features that developers can use to improve their connected home apps, making the kit "easier and more feature-rich" for everyday users. Hall noted that one of the more impressive new features of HomeKit includes the implementation of custom triggers. Users can now combine elements to trigger scenes (activation or de-activation of a number of HomeKit accessories) in response to various different user activities. Hall commented that the additional augmentation will require a "central control hub" and should drive incremental Apple TV sales as a result in addition to increasing "platform stickiness." The analyst added that this story has a "slight positive impact" on Apple.

Hall is also following reports that Foxconn Technology is in talks to manufacture iPhone devices in India. India could help Foxconn mitigate accelerating wage inflation in China and base its new production site closer to markets where its key clients want to grow. Hall cited Reuters who reported that Foxconn is looking to develop 10 to 12 facilities in India by 2020, but offered no other details. Lower production costs could also help Foxconn keep hold of Apple orders amid "intensifying" competition with "nimble" manufacturing rivals such as Quanta Computer. Hall concluded that this story has a "neutral impact" on Apple.