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Apple's annual Worldwide Developer Conference (WWDC) starts Monday with a keynote address from CEO Tim Cook. Ahead of the conference $AAPL new product and upgrade rumors from a new iPhoneSE, mobile OS, new services and augmented reality.

Apple WWDC 2018

 Apple Worldwide Developers Conference San Jose, CA, June 4–8

It all begins June 4 at 1 p.m. ET

Apple will most likely use its keynote presentation on Monday to introduce its latest software and services, a natural progession as iPhone sales growth slows. Apple Music, Apple Pay, the App Store are becoming increasingly important services for Apple. The iPhone has long been Apple's chief profit center but smartphone demand has dropped back. More expensive phones mean people are holding onto their devices longer.

From the last earnings report we saw revenue from things like the App Store, Apple Music and Apple Pay reach $9.2 billion for the first time, up over $2 billion from the previous year. Paid subscriptions went over 270 million in Apple's March quarter, up more than 100 million from the same period a year ago and up 30 million just from the end of December.

Services

Services are the future as we outlined earlier and Morgan Stanley analyst Katy Huberty says "Services are fast becoming Apple's primary growth driver,  the App Store, and services more broadly, holds the key to Apple's future."

Health and fitness are likely to get an upgrade for both the iPhone and the Apple Watch. Talk is of new features for developers to use different sensors on the watch to make better apps

New iPhone SE

The iPhone SE is the smaller, more affordable phone from Apple. The new SE is rumored to like an iPhone 5 but an Apple designed A10 processor which we forst saw with the iPhone 7. This iPhone was brought on in 2016 at $399, by years end analysts said the iPhone SE made up nearly 10% of total iPhone sales for the year.

With its lower price, the new iPhone SE is expected to have a smaller 4.5-inch screen and may  have wireless charging capabilities, which came with the iPhone 8 and X.

KeyBanc analyst Andy Hargreaves wrote in a note on May 30  "The iPhone SE has been on a separate upgrade calendar from the higher-end iPhones and could be updated at WWDC." 

New Mobile OS

It has been expected from a while that Apple will upgrade it's mobile operating system (OS) from the current 11.4 to iOS 12. The new iOS is expected to allow for cross platform development between mobile app and Macs. An interesting muted feature that Blooberg speculated on is "Digital Health" to monitor overall time spent on the phone and various apps. Adroid phones announced the feature in response to concerns about smartphone addiction. It was announced at Google's own I/O developers conference in early May.

Siri and FaceTime Upgrade 

There are rumors that Siri may be upgraded with the competition from Amazon's Alexa and Alphabet's Google Home. the is also a rumor that animojis will expand from just being available in iMessages to FaceTime,

"Apple must change the perception that it is lagging behind Amazon and Google on voice-based assistants and on conversational interfaces. While still overhyped, there is no doubt that voice as an interface powered by artificial intelligence is a disruptive force Apple must embrace faster." Forrester analyst Thomas Husson said.

Augmented Reality

Apple latest iPad featured augmented reality features such as upgraded sensors and cameras that bring with it an  improved AR experience. The rumor hereto has been around since 2017, that is the Apple project T288  for AR/VR smart glasses and headset. Release is slated for 2020, the expectation is $AAPL needs to show advanced technology with the likes of NVidia continually pushing boundaries and will give us all a teaser of what's to come. Apple could introduce the ability to play multiplayer games in AR.

Augmented reality and virtual reality are inverse reflections of one and the other. Virtual reality offers a digital recreation of a real life setting, while augmented reality delivers virtual elements as an overlay to the real world.

IPad and Macs

Aside from the iPhone WWDC has never been about hardware, so there are no expectations for substantial Mac or iPad changes.  Apple will  introduce its latest software and services for Macs, Apple TV and Apple Watch.

Apple declined to comment ahead of WWDC

Source: Apple, Bloomberg, C-Net

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