Apple Inc. (NASDAQ: AAPL) is going to upgrade the Apple TV this Summer, with the company’s June WWDC being the most likely forum for discussion about the set top box. With the revolution in Tim Cook’s living room ambitions that promises, it should open up a host of revenue streams to the Cupertino, California company.
Here’s a look at four of the ways analysts think that Apple will be able to make money from the Apple TV, and how they think the set top box will do as the company expands its reach into the center of the home.
1-Apple streaming service
The huge buzz around an Apple TV streaming service means that the company is likely working on it in the background and FBR Capital Markets analyst Daniel Ives sees it as a potentially strong part of the business that will help the company reach his $185 price target.
Rod Hall of JPMorgan says that Apple will be able to price the service between $30 and $40, and the company will be able to push most of the streaming costs onto the content providers. That means that the deciding factor will be in negotiation between Apple and the content providers, something which Apple tends to excel at.
2-Gaming on Apple TV
The gaming market will be worth more than $100 billion by the end of 2017 according to a report from NewZoo, and Apple is going to get a bigger piece of it with the Apple TV. The company already controls a sizable portion of the gaming market through its mobile offerings.
Rod Hall of J.P. Morgan reckons that Apple can break into the $35 billion home gaming market with the Apple TV. He thinks the company will include a dedicated app store for the device that will simplify the gaming experience.
3-HomeKit home automation
HomeKit is the Apple home automation and internet of things solution. It’s a secret and nobody knows the specifics, but the internet of things market is going to be huge. Cisco’s analysis suggests that there will be a total of $14.4 trillion up for grabs in the market in the next decade.
Michael Wolf, who writes about the internet of things and other technologies for Forbes says that there are already secret partners for the HomeKit software and Apple is apparently not letting anyone talk about their projects, or the home automation aspects of the AppleTV.
4-The move to a full Apple TV Set
This is the resident opinion of Gene Munster, it’s what he speculates on constantly when talking about Apple. Munster reckons that the new and improved Apple TV, along with the dedicated app store and streaming service, are sure signs that Apple will launch a full TV set in the near future.
Munster says that the TV will cost around $1,500 for the base model. That’s a price that previously seemed impossible for Apple to get away with. In the aftermath of the $10,000 Apple Watch, it seems reasonable. If the company does get around to fulfilling Munster’s fantasies, expect a great many reminders from the analyst, and huge revenue numbers from the company.