Apple Inc. is set to open up pre-orders for its set top box known as the Apple TV next Monday based on words from CEO Tim Cook at the ongoing WSDJ Live conference. The Apple TV is already gaining buzz even before it hits the shelves as reviews seems to place it above other offerings in the market. Analysts are already falling in love with the Apple TV as some of them are hinting that the device and its bundled service could be the next big hit for Apple.
Apple has succeeded in taking its dream of revolutionizing the TV from a hobby into a reality with the unveiling of a new generation of the Apple TV. Apple is already working out content deals for the TV service and it appears that the TV service would be getting off on a high-sounding note when it debuts. More so, the tech giant is working with developers to ensure that the TV service is backed by an army of apps that provides a more robust TV experience.
Analysts are Positive about Apple TV
Analysts are already placing big bets on Apple’s ability to change the face of digital entertainment in the living room. Angelo Zino, senior industry analyst at S&P Capital IQ and SNL say Apple has the depth of knowledge and resources to create a modern living room experience. In his words, “Overall the new hardware and operating system, on both ends, it appears that they’re doing a great job with initial efforts. This is just the start of better things to come.”
Zino also posits that the firm might be able to turn the TV experience into another billion-dollar business if the TV apps create a strong demand. In his words, “Siri capabilities overall will help the user experience, and on the operating side, Apple has the best app developers in the world. So expect great apps in the living room”.
Apple has avoided a full frontal collision course with the likes of Netflix by working on live TV streaming content deals for its TV service as opposed to setting up a movie streaming service. Earlier this week, Les Moonves, President and CEO at CBS revealed that “Apple is having conversations with everyone about doing their own streaming services”.
$1B in sight for Apple TV
There are hints that the service will be starting out at $40 per month. At $40 per month, Apple would need to sell 25,000,000 subs to make it a billion dollar business. If the service sells 2,083,333 subs per month, it should be able to make that $1B mark in one year.
Selling, 4,166,666 units per month should help Apple TV reach the $1B mark in six months. It remains to be seen what its approach to getting its TV service to the $1B mark would be – however, Apple may have the wherewithal to pull off a 5 million monthly sales figure based on its strong brand image.