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Apple TV sales topped $1B in 2013, becoming Apple's fastest growing hardware

post #1 of 52
Thread Starter 
Sales of the Apple TV are estimated to have grown by 80 percent in 2013, reaching around 10 million units for the calendar year, or some $1 billion worth of set-top boxes sold to end users.

Apple TV data
Estimated Apple TV sales since 2007. Chart via Horace Dediu of Asymco.


Apple Chief Executive Tim Cook revealed during his company's annual shareholder meeting on Friday that total sales of the Apple TV topped $1 billion in 2013. Priced at $99 each, that would mean sales were beyond 10 million for the year.

In response to the new data released by Cook, analyst Horace Dediu of Asymco took to Twitter to reveal he estimates that sales of the Apple TV have increased by 80 percent year over year. That would make the Apple TV the company's fastest-growing hardware product.

Apple CEO Tim Cook admitted Friday it's hard to continue referring to the Apple TV as a "hobby" with more than $1 billion in sales in 2013.Given the success of the Apple TV last year, even without an update to the diminutive streaming device, Cook admitted it's tough to continue to call the set-top box a "hobby" anymore. For years, Apple has famously referred to the Apple TV with that identifier, suggesting that it does not see the product as a major revenue driver in the same fashion as the iPhone or iPad.

Dediu estimates that 28 million Apple TV units are around $3.5 billion, with 28 million units sold since 2007. If the Apple TV is included in total iOS device sales for 2013, Apple shipped about 250 million units running iOS last year.

Cook's announcement comes the same day that Apple has launched a new promotion providing a free $25 iTunes gift card with the purchase of a new Apple TV in the U.S. Given that the device hasn't seen a hardware upgrade since early 2012, it's been taken by some as a sign that a new model could be revealed in the near future.

Bloomberg supported that assertion earlier this month, when the publication claimed that a new Apple TV is set to be introduced in April. Unnamed sources suggested that while Apple may show off a new device, it's not expected to go on sale to the public until later this fall, implying that it could be a significant revision of the current third-generation Apple TV.

Over the last year, Apple has been steadily adding new channels to the Apple TV, offering users new ways to access high-definition content on their television. Despite this, there is still not a formal App Store for the Apple TV -- something a vocal subset of users have been clamoring for since the redesigned, iOS-based set-top streamer became available.
post #2 of 52

Nice.

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post #3 of 52
boom.. did not see that one coming. I wonder how much of this was caused by interest in ChromeCast, and then deciding to up sell one self into AppleTV instead; after comparing the two platforms.
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post #4 of 52
Horace Dediu wrote, "Where Apple TV's $1 billion revenues can be found: (17% of the grey area over last 4 quarters) "

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post #5 of 52
But...but... Google had it's AppleTV "killer". Google even had Kevin Bacon hawking it's stuff (yeah, thru Logitech but so what).

This shows once again, that the iHaters, Google propagandists, overpaid "analysts", etc. have zero clue how the market works. Keep up the good work Apple.

I got one for my 73 year old mom last year. She loves watching old shows. Not being tech-saavy at all, she was a little taken back by the fancy computer-looking stuff, now she can't get enough of it, especially Netflix, and she has retired her weekly DVD/Blu-Ray purchases at Costco and replaced it with renting on iTunes.

The polish and quality of ATV's interface is the reason GoogleTV could NEVER compete. GoogleTV is only for self-important tech-heads that think their basement-dwelling ideas are perfect for everyone else.
post #6 of 52
Quote:
Originally Posted by AppleInsider View Post

Apple Chief Executive Tim Cook revealed during his company's annual shareholder meeting on Friday ....

Interesting rumor related to shareholder meeting that Oppenheimer may retire (I don't know Forbes's credibility on Apple-related matters): http://onforb.es/1khdUdd

 

If it turns out to be true, I'd say, it's about time. Apple's needs and complexities have far outgrown him.

 

(This is a repost -- I thought it was important enough a rumor and therefore OK to post twice).

post #7 of 52
Quote:
Originally Posted by sflocal View Post

But...but... Google had it's AppleTV "killer". Google even had Kevin Bacon hawking it's stuff (yeah, thru Logitech but so what).

This shows once again, that the iHaters, Google propagandists, overpaid "analysts", etc. have zero clue how the market works. Keep up the good work Apple.

I got one for my 73 year old mom last year. She loves watching old shows. Not being tech-saavy at all, she was a little taken back by the fancy computer-looking stuff, now she can't get enough of it, especially Netflix, and she has retired her weekly DVD/Blu-Ray purchases at Costco and replaced it with renting on iTunes.

The polish and quality of ATV's interface is the reason GoogleTV could NEVER compete. GoogleTV is only for self-important tech-heads that think their basement-dwelling ideas are perfect for everyone else.

Who needs GoogleTV if you have a Chromecast (or two). It also works with a lot more devices.
Edited by Gatorguy - 2/28/14 at 11:14am
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post #8 of 52
Quote:
Originally Posted by SolipsismX View Post

Horace Dediu wrote, "Where Apple TV's $1 billion revenues can be found: (17% of the grey area over last 4 quarters) "

 

Its still not very significant indeed compare to the overall income.  They need to revamp it, if they cant secure TV deals they could still add apps and games to it so it add value and fonctionnality.

 

Since there were at a shareholder meeting and if they plan to announced a new model soon he could have giving the invites now. Sometimes it really looks like Tim Cook is going out is way to bring down the stock.

 

For the event and since its a friday, I sold everthing and did a straddle in the weekly options.  I just covered and saved.  I need to get back in before the market close. I will never hold into events or earnings anymore and ride the rise pre-earning or pre-event.

post #9 of 52
Quote:
Originally Posted by herbapou View Post
 
Quote:
Originally Posted by SolipsismX View Post

Horace Dediu wrote, "Where Apple TV's $1 billion revenues can be found: (17% of the grey area over last 4 quarters) "

 

Its still not very significant indeed compare to the overall income.  They need to revamp it, if they cant secure TV deals they could still add apps and games to it so it add value and fonctionnality.

 

Since there were at a shareholder meeting and if they plan to announced a new model soon he could have giving the invites now. Sometimes it really looks like Tim Cook is going out is way to bring down the stock.

You have an interesting take on AppleTV right after someone tells you that sales grew by 80% and revenue was $1B. Now you want tell to Cook how to do his job and that the AppleTV needs to be revamped?   From a business point of view, your comment seems a bit counter intuitive, don't  you think?  What kind of sales growth of AppleTV is enough to satisfy you? 

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post #10 of 52
Quote:
Originally Posted by herbapou View Post

Its still not very significant indeed compare to the overall income.  They need to revamp it, if they cant secure TV deals they could still add apps and games to it so it add value and fonctionnality.

Since there were at a shareholder meeting and if they plan to announced a new model soon he could have giving the invites now. Sometimes it really looks like Tim Cook is going out is way to bring down the stock.

For the event and since its a friday, I sold everthing and did a straddle in the weekly options.  I just covered and saved.  I need to get back in before the market close.

1) In and of itself it's significant money for most of their competitors. You know, the ones that can't turn a profit but Wall Street says is poised to overtake Apple with the latest vaporware.

2)Tim is doing nothing that Jobs hadn't done before him. They send out the invites and make the announcement the week before and they usually don't demo it until ready. There are some exceptions and I wish Cook had held off on the 2012 iMac and 2013 Mac Pro even longer because they don't seem like they were yet production ready, but Jobs also had those types of issues under his belt from time to time. The last thing I want Apple to do is announce a new product months in advance. That's not the Apple I appreciate.

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post #11 of 52
What I like best about AppleTV. The ability to go to the market and buy a gift card and rent movies without a credit card. The one thing I don't like about AppleTV is you have to have a cable subscription in order to use many of their icons. I use an antenna.
post #12 of 52
Quote:
Originally Posted by Gatorguy View Post
 
Quote:
Originally Posted by sflocal View Post

But...but... Google had it's AppleTV "killer". Google even had Kevin Bacon hawking it's stuff (yeah, thru Logitech but so what).

This shows once again, that the iHaters, Google propagandists, overpaid "analysts", etc. have zero clue how the market works. Keep up the good work Apple.

I got one for my 73 year old mom last year. She loves watching old shows. Not being tech-saavy at all, she was a little taken back by the fancy computer-looking stuff, now she can't get enough of it, especially Netflix, and she has retired her weekly DVD/Blu-Ray purchases at Costco and replaced it with renting on iTunes.

The polish and quality of ATV's interface is the reason GoogleTV could NEVER compete. GoogleTV is only for self-important tech-heads that think their basement-dwelling ideas are perfect for everyone else.

Who needs GoogleTV if you have a Chromecast (or two). It also works with a lot more devices.

??? What kind of devices did GoogleTV need to work with?

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post #13 of 52
Quote:
Originally Posted by Tjduffy View Post

What I like best about AppleTV. The ability to go to the market and buy a gift card and rent movies without a credit card. The one thing I don't like about AppleTV is you have to have a cable subscription in order to use many of their icons. I use an antenna.

I think you mean broadband connection.   I get my TV over antenna also and don't have cable.  DSL for my AppleTV.

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post #14 of 52
What I mean is I do not have cable television, I have an ISP provider. But if you want to use some of AppleTV icons they demand you have cable TV in addition to your Internet connection. But what I like about AppleTV regardless of some of its drawbacks for reasons stated, you can go to the market by a gift card and bam you can start renting movies without a credit card.
post #15 of 52
Quote:
Originally Posted by snova View Post
 

You have an interesting take on AppleTV right after someone tells you that sales grew by 80% and revenue was $1B. Now you want tell to Cook how to do his job and that the AppleTV needs to be revamped?   From a business point of view, your comment seems a bit counter intuitive, don't  you think?  What kind of sales growth of AppleTV is enough to satisfy you? 

 

its not just a question of sales growth, I DO want those features to actually used them... :p 

 

An app store will spark innovation by devs in ways Apple could not have think of or seen coming. It will enhanced the product.


Edited by herbapou - 2/28/14 at 11:39am
post #16 of 52
Quote:
Originally Posted by snova View Post

??? What kind of devices did GoogleTV need to work with?

Would GoogleTV offer content initiated from your Apple device? Maybe it did. Dunno.
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post #17 of 52
Apple TV is used by a lot of businesses and educational institutions. If you use iPads in your organization it makes sense to have an ATV connected to every screen. It is a relatively small investment for fantastic functionality. Remember those cables and adapters to the TV / smart board / projector?
post #18 of 52

I have 1 2nd Gen…and 2 3rd Gen Rev A….In need of one more. I will wait for the next iteration. Love my Apple TV's

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post #19 of 52
Quote:
Originally Posted by Tjduffy View Post

What I like best about AppleTV. The ability to go to the market and buy a gift card and rent movies without a credit card. The one thing I don't like about AppleTV is you have to have a cable subscription in order to use many of their icons. I use an antenna.

 

Its even better if you buy youre gift cards on sales or with airmiles :p  This is what a do.

post #20 of 52
Originally Posted by AppleInsider View Post

Over the last year, Apple has been steadily adding new channels to the Apple TV, offering users new ways to access high-definition content on their television. 

 

Apple's battle to break into and disrupt the television industry is a long-term war of attrition.

There are plenty of deeply entrenched old-school players (cable / satellite / over-the-air networks, etc.)

Each and every one of whom will fight tooth-and-nail against internet TV unless they get paid somehow.

 

Example 1: the NBC Olympics app required users to enter their cable or satellite account info before playing video.

Example 2: the Xbox One requires a cable connection.  No live TV on it without a cable / satellite subscription.

Example 3: CBS, Hulu, Viacom, and others all blocked Google TV access to their content.

 

Ad nauseam.  The old-school players have worked long and hard on lock-in.  It'll be a long war.

(So don't hold your breath for an Apple-branded TV set any time soon, Gene.)

 

 

Originally Posted by AppleInsider View Post

... there is still not a formal App Store for the Apple TV -- something a vocal subset of users have been clamoring for since the redesigned, iOS-based set-top streamer became available.
 
Pretty sure there won't be a general App Store for Apple TV.  It really feels like Apple will cherry-pick developers.
The Apple TV interface is already cluttered with icons.  Can you imagine scrolling through 150 app icons on your TV?
Just to find your favorite to-do list app?  Or your favorite Flappy Bird clone?
 
And that's just the tip of the Apple TV App Store iceberg of hurt.  How will Apple approve / disapprove apps for Apple TV?
Will apps be forced to conform to some all-new Apple TV HIG (Human Interface Guideline)?  Will poorly designed apps make it through?
Will it be possible to build Universal TV / iPad / iPhone apps?  How will the UI need to change for each device and its screen format?
 
But the really big problem is controlling your TV.  TV has always been about choosing content and watching it.  Very simple.
Attempts at adding a layer of internet + computing complexity to the TV experience (e.g. WebTV and Google TV) have all failed.
I'd argue that the current state of DVR + 400 channels + 4-digit channel IDs + 80-button remotes is already a user interface disaster.
We don't think twice about it because we've all grown up with that complexity.  "Oh well, it's just the way things are done."
 
So no, I don't think Apple will allow just any random developer to publish apps for Apple TV.  I think they'll be extremely picky.
Big legacy studios, legacy cable / satellite content aggregators, new internet-only upstart content creators etc. to start with.
And maybe the occasional game, but only the top-sellers on the conventional iOS App Store, and only if they can be controlled "remotely."
Huge difference between tapping on a screen in your hand and controlling a game on your TV.  
The "10 foot interface" is more vast than you think it is.

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post #21 of 52
Quote:
Originally Posted by Tjduffy View Post

But if you want to use some of AppleTV icons they demand you have cable TV in addition to your Internet connection. 
they being the content provider, right? Because, I don't think this is unique to AppleTV, or Apple for that matter. Its my understanding, you will have the same issue on say "Roku" or other competitor.  Correct?
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post #22 of 52
Quote:
Originally Posted by SolipsismX View Post

2)Tim is doing nothing that Jobs hadn't done before him. They send out the invites and make the announcement the week before and they usually don't demo it until ready.  ...
The last thing I want Apple to do is announce a new product months in advance. That's not the Apple I appreciate.

 

Announced it months in advance no, but if they send invites in a few weeks from now then he missed an opportunity.  imo he talked about the Apple TV for a reason and its not a random stat, the upgrade is coming soon.

post #23 of 52
Quote:
Originally Posted by SockRolid View Post
Pretty sure there won't be a general App Store for Apple TV.  It really feels like Apple will cherry-pick developers.
The Apple TV interface is already cluttered with icons.  Can you imagine scrolling through 150 app icons on your TV?
Just to find your favorite to-do list app?  Or your favorite Flappy Bird clone?

What could work is an iPad / iPhone content store. Buy your game / show / season / movie and next time you turn on your aTV  - voila! There is an icon representing your purchase. At the moment navigation via iPhone  / iPad is not good. I think Apple need to re-design the interface.

post #24 of 52
Quote:
Originally Posted by Gatorguy View Post
 
Quote:
Originally Posted by snova View Post

??? What kind of devices did GoogleTV need to work with?

Would GoogleTV offer content initiated from your Apple device? Maybe it did. Dunno.

Ah, I see what you are saying.  I thought you were saying GoogleTV depended on some other device.  Which it does not.   The same can not be said, about ChromeCast.  It does depend on other devices, its not standalone like GoogleTV and AppleTV.  So one can flip your argument around and say too bad ChromeCast depends on other devices.  If you were to say that ChromeCast can be standalone and can be used with other devices (like AppleTV) then you would have something. 

 

its like saying, you bought a electric car to save on fuel and then complaining that too bad you can't refuel it with gas. Or that you bought a normal car, and then complaining that you can't simply refuel it by plugging it into the electrical socket.  AppleTV in this case would be Hybrid car. It does it both ways.  Standalone or driven by external device. 

 

Now back to you original question. "Who needs GoogleTV, when you got Chromecast" . I think the answer should be clear who those people are.  Read up a few posts about the poster who gave an AppleTV to his non-techie mother to use and loves it.  I'd say she would be one who would prefer a standalone product.   For young kids watching TV, I'd prefer to hand them the AppleTV remote than my iPhone.  I'd say that's another candidate. 


Edited by snova - 2/28/14 at 12:01pm
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post #25 of 52
Quote:
Originally Posted by SockRolid View Post
Pretty sure there won't be a general App Store for Apple TV.  It really feels like Apple will cherry-pick developers.
The Apple TV interface is already cluttered with icons.  Can you imagine scrolling through 150 app icons on your TV?
Just to find your favorite to-do list app?  Or your favorite Flappy Bird clone?

 

I dont agree at all. Having a piece of crap interface is not a reason to not implement an app store. The interface need to be improved. Like other app stores, of course apps would need to be approved by Apple before then can be added.

post #26 of 52
Quote:
Originally Posted by anantksundaram View Post
 

Interesting rumor related to shareholder meeting that Oppenheimer may retire (I don't know Forbes's credibility on Apple-related matters): http://onforb.es/1khdUdd

 

If it turns out to be true, I'd say, it's about time. Apple's needs and complexities have far outgrown him.

 

(This is a repost -- I thought it was important enough a rumor and therefore OK to post twice).

 

And who would be qualified to replace Oppenheimer?

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post #27 of 52
Not bad for a hobby.
post #28 of 52
Quote:
Originally Posted by anantksundaram View Post

Interesting rumor related to shareholder meeting that Oppenheimer may retire (I don't know Forbes's credibility on Apple-related matters): http://onforb.es/1khdUdd

If it turns out to be true, I'd say, it's about time. Apple's needs and complexities have far outgrown him.

(This is a repost -- I thought it was important enough a rumor and therefore OK to post twice).
Care to explain why you think he needs to go?
post #29 of 52
Quote:
Originally Posted by herbapou View Post

Announced it months in advance no, but if they send invites in a few weeks from now then he missed an opportunity.  imo he talked about the Apple TV for a reason and its not a random stat, the upgrade is coming soon.
An opportunity for what? I'd rather everyone be surprised with an announcement.
post #30 of 52

1 Billion apparently includes movies etc bought on the Apple TV, not just hardware sales.

 

Create an Apple TV app store and allow it to play iOS games and expect that to be 4+ Billion next year.

post #31 of 52
Quote:
Originally Posted by Evilution View Post
 

1 Billion apparently includes movies etc bought on the Apple TV, not just hardware sales.

 

I don't think so. All content is put that under "iTunes revenue". see slide above.  Especially since iTunes the app itself is free. ;-)  But I am sure AppleTV sales contributes to the iTunes revenue, which make it even more important than just the revenue for the AppleTV itself.  So if you wanted to include AppleTV + the iTunes content it plays and rentals, the number would be even bigger than $1B.

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post #32 of 52
Quote:
Originally Posted by AppleInsider View Post

...$1 billion worth of set-top boxes sold to end users.
 
...Cook admitted it's tough to continue to call the set-top box a "hobby" anymore. 

...since the redesigned, iOS-based set-top streamer became available.

 

"Set-top" is such an anachronism!  Time to revamp our descriptors for the modern reality of not having any "top" to the set!

 

Oh well, "revamp" is an anachronism too, since hardly anyone even knows what a "vamp" is, or goes to shoemakers to have it done!

post #33 of 52
Quote:
Originally Posted by herbapou View Post
 

 

Its even better if you buy youre gift cards on sales or with airmiles :p  This is what a do.

 

Me too!

 

A few months back, there was a big ebay retailer selling Itunes giftcards with a real nice discount (I think it was 25% off), so I stacked up and bought a whole crap load of them.

 

I should be set for the next year at least.

post #34 of 52
Their execution with Apple TV has been pretty smart so far. I hope the previous generation will support the apps and games if they do plan on opening it up. I think they should offer a version of Apple TV for $149 that includes a game controller though. That way maybe more developers will include controller support.
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post #35 of 52
Originally Posted by TeaEarleGreyHot View Post

"Set-top" is such an anachronism!

 

“Setside” sounds too much like ‘setsunai’, and with AirPort already called AirMac in Japan, that’s not gonna fly. :p

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post #36 of 52
Quote:
Originally Posted by Tallest Skil View Post
 

 

“Setside” sounds too much like ‘setsunai’, and with AirPort already called AirMac in Japan, that’s not gonna fly. :p

 

Actually I would love for Apple to release an Apple brand TV/Monitors that can accept an AppleTV dongle.  That way no box or cables and you still have an upgradable Apple TV.  They could still sell the puck for people with TV sets.

post #37 of 52
really surprised that they haven't released an AppleTV app store yet. Seems like low hanging fruit that would crush the competition.
post #38 of 52
Quote:
Originally Posted by SpamSandwich View Post

 

And who would be qualified to replace Oppenheimer?

The corporate world is awash with excellent CFOs.

 

Moreover, Apple recently brought in a Controller from Xerox. I don't know if he'll fit the bill, but I am guessing he must be pretty good....

post #39 of 52
Quote:
Originally Posted by Rogifan View Post

Care to explain why you think he needs to go?

http://forums.appleinsider.com/forums/posts/by_user/id/29883

 

(Ooops... it's post #21 of the thread -- I thought the link would take one to the actual post. Sorry).

post #40 of 52
Quote:
Originally Posted by herbapou View Post
 
Quote:
Originally Posted by Tallest Skil View Post
 

 

“Setside” sounds too much like ‘setsunai’, and with AirPort already called AirMac in Japan, that’s not gonna fly. :p

 

Actually I would love for Apple to release an Apple brand TV/Monitors that can accept an AppleTV dongle.  That way no box or cables and you still have an upgradable Apple TV.  They could still sell the puck for people with TV sets.

they already make that. Its called a Apple Cinema Display.  ;-P  joking of course.

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