Today: Apple (AAPL) shares sink despite new details of possible streaming music service, reports of iPhone trade-in program and a revamped line of MacBook Air laptops .
The lead: Apple rumors build as WWDC nears
With Apple's Worldwide Developers Conference just a few days away, rumors are flying about what new goodies the Cupertino tech giant will reveal. A trio of reports Thursday painted a clearer picture of what Apple likely has in the pipeline, including a streaming music service, a new iPhone and a souped-up line of
Men are silhouetted against a video screen with an Apple logo as they pose with an Apple iPhone 4 smartphone in this photo illustration taken in the central Bosnian town of Zenica, May 17, 2013. REUTERS/Dado Ruvic
MacBook Air laptops. The long-rumored music service, dubbed by some as "iRadio," will be free and feature audio ads, according to a Reuters report Thursday. That would put in on par with the current leaders in Internet radio: Google (GOOG), Oakland-based Pandora and Spotify. It would also likely offer an ad-free paid version. Quoting sources close to the project, Reuters said Apple has already contacted potential advertisers, and will also feature banner ads via its iAds mobile
network. The service would likely follow Pandora's model, with personalized streaming stations based on users' preferences. A new survey found Apple could open up a huge new market. According to a report by Ad Week, a study by GroupM Next found 34 percent of Internet radio listeners would switch to Apple's offering, sight unseen, with another 49 percent at least checking it out. "Consumers express faith in a product experience that steps outside of Apple's mainstream product offering, based on brand name alone," Jesse Wolfersberger, GroupM Next's director of consumer insights, said in a statement.
That faith in Apple could be "potentially disastrous" for Pandora and other competitors, the study said. "Should Apple decide to flip the switch on this product, it will be an absolute game-changer in the digital audio market, and likely another big win for Apple," Wolfersberger said. After falling steeply earlier in the week, Pandora shares actually rose 11 cents, or 0.77 percent, on Thursday. Its shares are still down almost 13 percent since Friday.
On the phone front, Bloomberg News reported Thursday that Apple would soon start a trade-in program aimed at consumers upgrading to the yet-to-be-announced iPhone 5. The report said Apple has a deal with mobile-phone distributor Brightstar, which reports strong demand for older-model refurbished phones in emerging markets. "The iPhone is an iconic device that people around the world want to own," David Edmondson, CEO of eRecyclingCorp, told Bloomberg. "If they can't afford a new Mercedes, they'll get a used one."
Worldwide, the cost of an iPhone -- usually starting at $649 without a service plan -- has traditionally been its biggest sales impediment. For months, Apple has denied rumors that it would release a smaller, cheaper iPhone model, but a refurbishment program could end up serving much the same purpose and open up potentially lucrative markets such as India and China.
Meanwhile, new reports say Apple is expected to unveil a new version of its MacBook Air line of laptops Monday. The blog 9to5Mac reported Thursday that the ultra-thin, ultra-light laptops would feature Intel's (INTC) new energy-efficient Haswell chip. The new MacBook Airs would also have Retina displays, and possibly faster Wi-Fi chips that could ease movie and music streaming.
Apple is also expected to announce updated operating systems -- iOS 7 for mobile and OS X 10.9 for laptops and desktops -- and rumors persist that a next-generation iPad may be unveiled as well.
Apple shares slid Thursday, down $6.65, or 1.49 percent, to $438.46. But many analysts believe the announcements next week, whatever they may be, should be enough to re-energize the company's stock, which has sunk about 20 percent since this time last year.
Silicon Valley tech stocks
Up: Google, Cisco (CSCO), HP, eBay (EBAY), Gilead, VMware, Yahoo (YHOO), Facebook, LinkedIn
Down: Apple, Oracle (ORCL), Intel, Juniper, Netflix (NFLX), Zynga
The SV150 index of Silicon Valley's largest tech companies: Down 0.97, or 0.08 percent, to 1,253.75.
The tech-heavy Nasdaq composite index: Up 22.57, or 0.66 percent, to 3,424.05.
The blue chip Dow Jones industrial average: Up 80.03, or 0.53 percent, to 15,040.62.
And the widely watched Standard & Poor's 500 index: Up 13.66, or 0.85 percent, to 1,622.56.
Check in weekday afternoons for the 60-Second Business Break, a summary of news from Mercury News staff writers, The Associated Press, Bloomberg News and other wire services.
The lead: Apple rumors build as WWDC nears
With Apple's Worldwide Developers Conference just a few days away, rumors are flying about what new goodies the Cupertino tech giant will reveal. A trio of reports Thursday painted a clearer picture of what Apple likely has in the pipeline, including a streaming music service, a new iPhone and a souped-up line of
Men are silhouetted against a video screen with an Apple logo as they pose with an Apple iPhone 4 smartphone in this photo illustration taken in the central Bosnian town of Zenica, May 17, 2013. REUTERS/Dado RuvicMacBook Air laptops. The long-rumored music service, dubbed by some as "iRadio," will be free and feature audio ads, according to a Reuters report Thursday. That would put in on par with the current leaders in Internet radio: Google (GOOG), Oakland-based Pandora and Spotify. It would also likely offer an ad-free paid version. Quoting sources close to the project, Reuters said Apple has already contacted potential advertisers, and will also feature banner ads via its iAds mobile
network. The service would likely follow Pandora's model, with personalized streaming stations based on users' preferences. A new survey found Apple could open up a huge new market. According to a report by Ad Week, a study by GroupM Next found 34 percent of Internet radio listeners would switch to Apple's offering, sight unseen, with another 49 percent at least checking it out. "Consumers express faith in a product experience that steps outside of Apple's mainstream product offering, based on brand name alone," Jesse Wolfersberger, GroupM Next's director of consumer insights, said in a statement.
That faith in Apple could be "potentially disastrous" for Pandora and other competitors, the study said. "Should Apple decide to flip the switch on this product, it will be an absolute game-changer in the digital audio market, and likely another big win for Apple," Wolfersberger said. After falling steeply earlier in the week, Pandora shares actually rose 11 cents, or 0.77 percent, on Thursday. Its shares are still down almost 13 percent since Friday.
On the phone front, Bloomberg News reported Thursday that Apple would soon start a trade-in program aimed at consumers upgrading to the yet-to-be-announced iPhone 5. The report said Apple has a deal with mobile-phone distributor Brightstar, which reports strong demand for older-model refurbished phones in emerging markets. "The iPhone is an iconic device that people around the world want to own," David Edmondson, CEO of eRecyclingCorp, told Bloomberg. "If they can't afford a new Mercedes, they'll get a used one."
Worldwide, the cost of an iPhone -- usually starting at $649 without a service plan -- has traditionally been its biggest sales impediment. For months, Apple has denied rumors that it would release a smaller, cheaper iPhone model, but a refurbishment program could end up serving much the same purpose and open up potentially lucrative markets such as India and China.
Meanwhile, new reports say Apple is expected to unveil a new version of its MacBook Air line of laptops Monday. The blog 9to5Mac reported Thursday that the ultra-thin, ultra-light laptops would feature Intel's (INTC) new energy-efficient Haswell chip. The new MacBook Airs would also have Retina displays, and possibly faster Wi-Fi chips that could ease movie and music streaming.
Apple is also expected to announce updated operating systems -- iOS 7 for mobile and OS X 10.9 for laptops and desktops -- and rumors persist that a next-generation iPad may be unveiled as well.
Apple shares slid Thursday, down $6.65, or 1.49 percent, to $438.46. But many analysts believe the announcements next week, whatever they may be, should be enough to re-energize the company's stock, which has sunk about 20 percent since this time last year.
Silicon Valley tech stocks
Up: Google, Cisco (CSCO), HP, eBay (EBAY), Gilead, VMware, Yahoo (YHOO), Facebook, LinkedIn
Down: Apple, Oracle (ORCL), Intel, Juniper, Netflix (NFLX), Zynga
The SV150 index of Silicon Valley's largest tech companies: Down 0.97, or 0.08 percent, to 1,253.75.
The tech-heavy Nasdaq composite index: Up 22.57, or 0.66 percent, to 3,424.05.
The blue chip Dow Jones industrial average: Up 80.03, or 0.53 percent, to 15,040.62.
And the widely watched Standard & Poor's 500 index: Up 13.66, or 0.85 percent, to 1,622.56.
Check in weekday afternoons for the 60-Second Business Break, a summary of news from Mercury News staff writers, The Associated Press, Bloomberg News and other wire services.