Apple (AAPL) Developing Tools To Increase Parental Control

Apple Inc. (NASDAQ:AAPL) announced that it is working on features that will provide increased parental control over smartphone usage of children.

The announcement was made following apprehensions from Apple’s shareholders Jana Partners LLC and the California State Teachers’ Retirement System regarding the role of the company in shaping a child’s future.

Per Bloomberg, Apple, in response to the criticism, also mentioned that since 2008 iPhone and other Apple products running on iOS have been offering parents tools that enable them to control what their children can access.

The company also offers an Ask to Buy feature that requires consent of parents to buy goods and services, adds Bloomberg.

The company is focusing on making vigilance stricter with the new tools.

Notably, shares of Apple have gained 46.5% in the past year, slightly outperforming the industry’s 46% rally.

The Charge

Per The Wall Street Journal, investors who collectively own $2 billion of Apple shares expressed concerns regarding the growing usage of smartphones among children and the impact it may have on their health.

They urged Apple, through an open letter, to provide more tools that will help parents monitor young children and thereby keep the usage to an optimum level.

Investors are optimistic about the long-term impact it will have on the company.

Per the letter, “addressing this issue now will enhance long-term value for all shareholders, by creating more choices and options for your customers today and helping to protect the next generation of leaders, innovators, and customers tomorrow.”

Facebook’s Attempt

Last month, Facebook Inc. (NASDAQ:FB) also unveiled an application called Messenger Kids, targeting the age group of less than 13 years, with parental control.

Reportedly, parents have exclusive control over the app, starting from setting up the child’s account to approving contacts from Messenger Kids Controls panel from their main Facebook app.

Zacks Rank & Stocks to Consider

Apple carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader technology sector are NetApp Inc. (NASDAQ:NTAP) and NVIDIA Corp. (NASDAQ:NVDA) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Long-term earnings growth rate for NetApp and NVIDIA is projected to be 11.3% and 10.3%, respectively.

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