Today: Apple will update its set-top box soon, according to a Buzzfeed report, but its long-rumored streaming TV service is still likely months away from launching. Also, social media stocks take a beating, and Netflix and Pandora show some Friday pop.
THE LEAD: APPLE TV UPDATE REPORTEDLY WILL LAUNCH BEFORE STREAMING SERVICE IS READY
Apple will unveil a revamped Apple TV in September, according to a new report, but its long-rumored subscription streaming TV service won't debut for months to come.
Buzzfeed reported Thursday that the Cupertino tech giant would launch its upgraded set-top TV box at its annual iPhone event in September. The device will reportedly feature Apple's new A8 chip, a touchpad remote control, Siri voice control and a dedicated TV App Store. Apple TV has not had a significant upgrade since 2012.
Consumers will have to wait a little (or a lot) longer for Apple's streaming TV service, though. While some expected details to be revealed at Apple's Worldwide Developers Conference in June, ReCode reported days before the conference that the service would be delayed until later this year, or 2016. And Apple stayed mum.
ReCode's report seems to support an unnamed source who told Buzzfeed that it's now expected "late this year -- maybe, but more likely next year." The report noted the lag time may help developers create better apps for the new device once the service finally does launch.
"One of the theories bandied about when WWDC came and went without any Apple TV announcements -- no new hardware, no SDK -- was that Apple didn't want to announce the new Apple TV until the subscription TV service was ready, too," John Gruber wrote on his Daring Fireball blog Thursday. "My guess: Apple held it back for September to have something significantly 'new' to announce alongside the new iPhones."
The service hopes to provide a bundle of about 25 streaming broadcast and cable channels, such as ABC, Fox, CBS, ESPN and FX, priced at around $30 to $40 a month, according to a Wall Street Journal report in March. That could speed up the trend toward cable TV cord-cutting, which isalready a viable alternative for many consumers.
In other Apple news, analyst Jeffrey Kvaal of Nomura Equity Research offered a glowing report on the company's future, upping it to "buy" status and raising its target price to $145.
"We expect Apple to extend its share gains in 2016," Kvaal wrote. "The strong iPhone 6 cycle still leaves plenty of scope for growth both with the 6S cycle and in China." Kvall said he expects Apple to eat away at Android sales in emerging Asian markets. He also said that while initial Apple Watch sales have been disappointing, the device still has long-term potential.
Apple shares slipped 0.87 percent Friday, or $1.07, to $121.30.
SV150 MARKET REPORT: SOCIAL NETWORKS SLUMP, NETFLIX AND PANDORA POP
The major U.S. indexes fell slightly Friday, largely due to disappointing earnings from Chevron and Exxon Mobil, whose second-quarter profits were both hurt by falling worldwide oil prices.
Social networks' stocks finished a miserable week despite earnings reports from Twitter, Facebook and LinkedIn that each beat expectations but revealed flaws. Twitter ended the week down more than 12 points after reporting weak user growth; Facebook was down 3 percent as spending rose and investors cashed in on profits; and LinkedIn finished down more than 9 percent as its ad business softened.
For the day, Twitter was down 1.48 percent, or 47 cents, to $31; Facebook was down 1.26 percent, or $1.20, to $94.01; and LinkedIn plunged 10.49 percent, or $23.82, to $203.33. And there was one bit of good news to end the week: Facebook CEO Mark Zuckerberg announced he and his wife, Priscilla Chan, are expecting a baby girl.
Netflix shares rose 2.47 percent, or $2.75, to $114.31, as the Los Gatos video-on-demand leaderlaunched its latest comedy series, "Wet Hot American Summer: First Day of Camp," continuing its relentless quest to produce more content than any other subscription cable channel, a milestone it should reach in the next year. Pandora jumped 3.61 percent, or 61 cents, to $17.52, as the Oakland-based Internet radio company rolled out its Sponsored Listening program for advertisers this week.
Yahoo dropped 2 percent, or 75 cents, to $36.67, as the Sunnyvale Internet giant announced the purchase of Polyvore, a Mountain View-based shopping startup. No price was announced, but Yahoo said it was particularly happy to acquire the company's native ad technology.
Shares in Santa Clara chipmaker Nvidia slipped 0.35 percent, or 7 cents, to $19.95, after it recalled its line of Shield tablets because of a fire risk. Electronic Arts was down 1.04 percent, or 75 cents, to $71.55, after an underwhelming earnings report Thursday, but the Redwood City video-game maker raised its full-year forecast, predicting record revenue based on "extremely strong" pre-orders for its highly anticipated "Star Wars: Battlefront" game due in November.
Google shares fell 1.06 percent, or $7.06, to $657.50, as the Wall Street Journal reported a new version of Google Glass is quietly being distributed to workplaces -- especially health care, manufacturing and energy businesses. The report said a consumer version of the device is not expected for at least another year.
Silicon Valley tech stocks
Up: Oracle, Intel, Cisco, VMware, Juniper, Netflix, Zynga, Pandora
Down: Apple, Google, HP, eBay, Gilead, Yahoo, Tesla, Salesforce, SunPower, SolarCity
The SV150 index of Silicon Valley's biggest companies: Down 7.82, or 0.44 percent, to 1,765.61
The tech-heavy Nasdaq composite index: Down 0.50, or 0.01 percent, to 5,218.28.
The blue chip Dow Jones industrial average: Down 56.12 or 0.32 percent, to 17,689.86.
And the widely watched Standard & Poor's 500 index: Down 4.79, or 0.23 percent, to 2,103.84.
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