The FT report said that Apple is developing a new software platform that would turn the iPhone into a remote control for lighting, security systems and home appliances.
The report points out that Silicon Valley sees this home automation as the next frontier, with Google's $3.2 billion purchase earlier this year of Nest Labs, a maker of thermostats and security systems that are connected to the Internet.
Apple would be taking on both Google and Samsung with any announcement on smart home technology at its June 2 Worldwide Developer Conference in San Francisco, California.
Rival Samsung has developed a range of smart appliances including refrigerators, TVs and washing machines, all of which can be controlled by its smartphones and watches.
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Munster said Apple's dividend hike and share buyback are already priced into the stock. The share buyback was sought by investor Carl Icahn who has a major stake in Apple. Apple boosted its share buyback by $30 billion share buyback and bumped its dividend 8 percent to $3.29 per share.
Icahn said, in a tweet, shortly after the announcement that he was pleased with the results and "Believe we'll also be happy when we see new products."
Munster said the the stock split, effective June 6 for shareholders of record June 2, could create some fresh buzz around Apple.
"There's probably some retail impact form it. It's natural," he said. If split at current levels, it would be about $88 per share, but he would expect to hear immediate calls of $100 targets on the post-split stock.
"We're still at $640 (pre-split target) but depending on what the new products are we're just going to take that into consideration, whatever that might be," he said.