What Will Apple Inc. (AAPL) Announce at WWDC 2013?

So will iRadio and All Access spell the end of internet radio pioneer Pandora Media Inc (NYSE:P) ? Probably not.

First, All Access is subscription-focused, which is a fundamentally different business model. Pandora Media Inc (NYSE:P) relies mostly on advertising. Paid subscribers account for only 1% of Pandora’s 70 million user base and subscriptions account for less than 15% of Pandora’s revenues. Even if All Access is a success, it might not necessarily take share away from Pandora Media Inc (NYSE:P).

Second, selling internet radio ads turns out to be a difficult process that requires lots of time with local buyers. This is something Pandora Media Inc (NYSE:P) has done successfully for years. It’s difficult to imagine Apple making the same effort.

And third, Apple Inc. (NASDAQ:AAPL) is looking to do something very different with iRadio by developing with a hybrid type of Web and radio service. Negotiating licensing terms will be difficult, buying Pandora Media Inc (NYSE:P) more time.

Other possibilities

Hardware: The next MacBook Air iteration is expected to feature Retina display following the MacBook Pro last year. This may be the only hardware update to appear at WWDC.

Apple TV: While no news is expected, it would be surprising if Apple didn’t have something TV-related in development. Apple may start moving developers onto an app-based model of its TV set-top box.

iCloud: Apple’s cloud storage and computing service is in desperate need of an overhaul. Apple Inc. (NASDAQ:AAPL) is expected to fix developer data syncing issues while improving iCloud’s navigation and file system.

Foolish bottom line

What shouldn’t you expect at WWDC? Moonshots.

WWDC will likely feature tweaks rather than game changers. Don’t expect any major hardware announcements regarding new phones or tablets. Anything related to Apple’s much speculated iTV or iWatch would be a big surprise.

Based on CEO Tim Cook’s recent comments, investors are unlikely to see any major product announcements until at least September.

Robert Baillieul has no position in any stocks mentioned. The Motley Fool recommends Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG). The Motley Fool owns shares of Apple and Google.

The article What Will Apple Announce at WWDC 2013? originally appeared on Fool.com.

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