SOLD! An Apple TV set for $1060

by umOuch on December 12, 2012

Apple TV set

There is an ever growing number of people eagerly awaiting the news of an Apple HDTV release. The Apple TV set, we believe, is the product that Apple is working on to help them in the process of taking over the worlds living rooms. Though there are many who doubt that Apple will ever make this leap, Apple fans, and investors alike, are following this story with great interest. Thanks to the folks over at CNN NEWS, we were able to get some information found in a note to clients, Morgan Stanley’s Katy Huberty, issued Tuesday about what she calls “iTV.” Note the difference between an iTV (a TV set) and an Apple TV (current set-top box).

Essentially Huberty put together the results of a proprietary survey of 1,568 U.S. heads of household that she’s been sitting on since September. Key findings

  • 18% of Americans own a smart TV (i.e. with Internet capability) but only 13% know they do, suggesting that there’s a market for a smart TV that’s as easy to use as an iPhone or iPad.
  • 11% of respondents said they would be “extremely interested” in buying an Apple-branded TV set, which translates into 13 million units in the U.S. alone.
  • 36% said they would be “somewhat interested,” which could translate into another 43 million units.
  • The 47% who were either “extremely” or “somewhat” interested is more than twice the 23% who said they were interested in buying an iPhone and the 21% who were interested in an iPad before either of those products were released.
  • Respondents who owned at least one Apple device were nearly four times more interested in buying an iTV that those who did not.
  • 46% of respondents were willing to pay over $1,000 for an iTV and 10% were willing to pay over $2,000. On average, respondents were willing to pony up $1,060, a 20% premium over the the average $884 they paid for their current TV set.
  • Respondents aged 18 to 29 — the largest consumers of video over the Internet — were willing to pay the most for iTV: a 32% premium over their current set.
  • Bottom line: iTV represents a $13 billion opportunity that could add $4.50 to Apple’s EPS.

Though we may all continue to debate the reality of Apple launching into the television market, which they will, there is no denying the numbers. Apple is what I like to refer to as an “on purpose” company. Everything they do is investigated, perfected, and responds to a real consumer need, both known and unknown. Granted the infamous iOS 6 Maps app, Ping, and Mobile Me are a few places where this may have fallen short, I would argue that when it comes to hardware they always succeed.

[Source: CNN Money]

  • Wysiwyg

    The status of smart TVs is the same as how smart phones were prior to 2007. Everyone wants to do it, but there no standard or usability. We need something revolutionary to set the standard.

  • Captain Practical

    Touch interface on TV screens could be a bad idea – all those smudges.
    Maybe just a multi-touch TV remote, like a magic mouse for your TV.

  • Still not buying it. Not convinced at all. Apple doesn’t need to release a tv. It’s not really appropriate. They know how the box is doing I don’t know if a dedicated television set would do any better. It certainly would cost them more than it does to replace a $99 box every year or two. I’d prefer them to stick with the box, it’s more versatile, costs less to produce and if it fails, they can easily scrap it. A TV would be much more detrimental if it failed as a product.

Previous post:

Next post: