Apple TV Sparks Interest, But Not $1500 Worth
August 9, 2012
By Joshua C. Rarrick
Two respected analysts posted notes concerning AppleInc. (NASDAQ:AAPL)’s rumored TV this week. These reports are not regarding the $99 Apple Inc. (NASDAQ:AAPL) set top box, but rather a full Apple TV set. Here’s what they had to say.
Ben Reitzes, of Barclays, expects Apple Inc. (NASDAQ:AAPL) to unveil a new television as early as next year, and he offers concerns regarding pc and laptop sales. According to CNN.com, he writes, ”We know iPads cannibalize notebooks, why aren’t investors talking about the potential cannibalization of desktops from an integrated TV?” His concerns are well founded, as tablets, such as the iPad have definitely impacted notebook sales worldwide, and a TV that offers computer like abilities, would most certainly cause desktop sales to take a hit.
Piper Jaffray’s analyst, Gene Munster expects that Apple Inc. will introduce their TV next year for sure. He had 200 consumers in the Minneapolis/St. Paul area to see what they thought.
His survey shows that 49% of those surveyed claimed an interest in purchasing an Apple brand TV. A total of 29% said they weren’t currently interested in purchasing a new TV,but would be if Apple did indeed offer one. However, only 12% of the participants said they would be willing to pay $1,500, which is what Munster believes to be a close figure to what Apple would charge for this TV. The average price people were willing to pay was around $530. Munster admits that $1500 is a long way from $530, but said that the fact that 12% were willing to pay that much for a TV was encouraging. He write,”While 12% seems small, it still moves the needle. If Apple gained a 10% share of the U.S. TV market in FY14, as opposed to our surveyed 12%, TV sales would still add 4% to our FY14 revenue estimates.”
If Apple truly does bring out an integrated TV, it could be a real money maker, which makes the purchase of their shares, all that much more of a juicy offer. However, this TV is still a rumor, and has yet to be officially confirmed, so I guess we will have to wait and see. Until then, the new iPhone is one new device we can look forward to from Apple.