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Apple ‘s ( AAPL ) strength in mobile devices is due largely to its app store platform, but the company faces an “existential threat” from software bots that could replace apps, UBS analyst Steven Milunovich said Wednesday. Apple’s App Store leads the $50 billion app economy and has been critical to the company’s success, Milunovich said in a research report. However, software bots that automate tasks could take on many of the roles that apps now provide, he said. Bots mostly reside in messaging apps, providing apps within apps, Milunovich said. “In China, WeChat provides high functionality, such as paying bills, hailing a cab and checking into flights through apps within apps,” he said. “ Facebook ( FB ) just announced the Messenger Bot Store, a bot platform that allows businesses to interact with consumers.” At Facebook’s annual developer conference in San Francisco on Tuesday, Facebook CEO Mark Zuckerberg showed how third parties can build chat bots into its Messenger service. He demonstrated a chat bot from 1-800-Flowers.com ( FLWS ) that could carry on a conversation with a customer who wanted to order flowers. Last month, Microsoft ( MSFT ) CEO Satya Nadella called chat bots the next big thing after apps and said that his company is aggressively investing in the technology. Chat bots offer a “more natural (way) for people to get things done” instead of having a separate app for each task. Chat bots use artificial intelligence to interact with people and complete tasks. Milunovich maintained his buy rating on Apple with a 12-month price target of 120. Apple stock was up 1.5% in late-afternoon trading in the stock market today , near 112. Scalper1 News
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