Gene Munster: These are the three things to watch with Apple

This is the moment Apple fans have been waiting for: The Apple Worldwide Developers Conference (WWDC) 2014 begins Monday.

All eyes will be on Apple CEO Time Cook, who will deliver the WWDC keynote address at 10a.m. Pacific Time (noon Eastern Time).

(Watch: How Apple moves post WWDC)

According to the person considered the best Apple analyst, there are three big things to look for this year. Gene Munster, senior research analyst at Piper Jaffray says people should expect the following:

1. Home automation

Munster said there will likely be an announcement of a platform that will allow third parties to build home automation hardware. This could allow users to control their lights, shades, and other appliances, using a simple application.

"This is likely one of those categories that Tim Cook has talked about," Munster said." We've seen a lot of patents that Apple has filed for in the last couple of years in this area. So, that's how we envision what's going to be announced."

2. iOS 8 Preview

The mobile operating system, iOS8, will likely be a big focus, according to Munster. He believes improvements to Siri and Apple Map will be included as well as the potential for some surprises.

"There's a wildcard that they're going to talk about payments and also fitness and vitals," Munster said. "This could be a preemptive move related to some wearable technology which we are expecting later in the year."

3. MacBook Air with Retina Display

Munster believes there's a 50/50 chance that Apple will release a new MacBook Air with Retina display. "I would hold off on buying anything in the next few hours here until we see something from that end," he recommends.

(Read: What Apple will (probably) reveal next week)

Still, Munster believes investors are skeptical about whether such innovations would matter much to Apple's business model. "Investors, just given the sheer size of Apple, are thinking that they're not going to be as impactful," said Munster, who has a $732 price target on Apple's stock. "So, I still think that there is room for investors to become more positive about the Apple story."

To see the full interview with Gene Munster of Piper Jaffray, watch the above video.

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