Apple to Offer Smart Speaker, Open Siri to Developers

The iPhone maker Apple has been notoriously private with its devices, but a new report suggests that is about to change.

Author:: Kat McKerrow
Publish date:: May 25, 2016 9:54 AM EDT

Apple (AAPL) - Get Report is notoriously close-mouthed about its newest innovations and products in development.

This is in part a brilliant marketing strategy, as months of rampant speculation stoke analyst, consumer and investor interest, and the official unveiling of a new product, service or upgrade is met with much ballyhoo.

But the Apple rumor mill is busy churning out tidbits about an Apple Car, an electric, potentially driverless minivan to rival Tesla Motors, with a possible release date in 2020. When this innovation is rolled out, Apple's stock and its profits are sure to shoot through the roof.

However, speculation is beginning to brew about another Apple innovation that may be decidedly less sexy than a self-driving vehicle but nonetheless could be a hot new gadget for the company. And as happened time and time again, Apple's cyclical business depends on hot new gadgets to boost its bottom line, as well as monster gains for investors.

Apple is using the technology behind its virtual personal assistant service, Siri, to create a smart speaker to rival Amazon's hit Echo, according to an anonymous source.

Smart speakers are quickly becoming a hot item. The Amazon Echo has been something of a sleeper hit for the company, selling more than 3 million units since its unveiling.

Even Alphabet is getting in on the game, unveiling the Google Home device this month.

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Smart speakers provide personal assistant services such as answering questions and performing tasks from playing music to turning on the house lights. Amazon's Echo fits in with the Internet of Things, communicating with other Wi-Fi-enabled household devices, as well as corresponding with favorite applications such as Spotify.

Until now, Apple has largely underutilized its Siri service by not opening the technology to outside developers. Whereas Amazon, Google and Microsoft have allowed users to create programs for their voice-controlled assistants, Siri has been confined to just Apple-branded apps and features.

But on Tuesday, the unidentified source said that Apple will soon roll out an unprecedented software development kit that will allow other developers and companies to integrate their products with Siri.

This is big news for the historically private Apple, as it works to catch up with Amazon and Google technology. This will continue to make the tech giant one of the best plays for investors.

Apple stock is up Wednesday, above $98 a share. Considering that the stock carries an analyst consensus one-year price target of $125.93, this is a bargain with significant profits still to be made.

And once the company officially rolls out these new products, the stock could see a big boost, indeed.

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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.