Apple could sell 13 Million television sets [Analyst]

According to a new report by analyst Katy Huberty, Apple could sell 13 Million Apple televisions at $1,060 each. Fortune has reported on her findings, displaying the results of a survey 1,568 Americans took part of.

  • 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.

Although these figures are encouraging, there is one major issue that Apple has to overcome to fix television’s “broken interface.” Huberty has also identified three ways to work around the current structure of television.

  • Apple could become a full-blown virtual cable service provider.
  • Apple could partner with existing pay-TV carriers and replace their set-top box with its own solution.
  • Apple could bundle the TV set with its existing Apple TV digital media receiver.

The second option seems the most sensible option. This is likely what Apple is already doing with pay-TV providers, in order to make the experience much more streamlined than it otherwise would be.

The release date for the Apple television is still debatable, with some saying that early next year is the way to go, and others doubting its existence all together. Apple is taking a long time to unveil this product, but with all the anticipation, there is bound to be a product to match it.


Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s