Apple selling half a million Apple TVs per quarter but no update planned for Q3

Posted:
in iPod + iTunes + AppleTV edited January 2014
As dissatisfied consumers return purchases of rival set-top-boxes in droves, Apple's market-leading Apple TV continues to achieve moderate success, selling roughly 500,000 units per quarter as the 2011 holiday shopping season approaches.



The latest update to Apple's $99 streaming media box arrived last fall and within just a few months went on to sell a million units. Since then, Apple has provided no update on sales of the device, but Concord Securities analyst Ming-Chi Kuo tells AppleInsider that his industry checks indicate the company shipped 480,000 units during the second calendar quarter of the year, representing more than 70% year-over-year growth.



Although Apple continues to see Internet television devices as a nascent category, frequently referring to the Apple TV as a "hobby," when sales of the device are pit against its peers, the Apple TV appears to be a runaway success.



For instance, Logitech said this week that "very modest sales" of its $249 Google TV-based Revue set-top-box were exceeded by returns of the product from unhappy customers, prompting the company to slash pricing by 66% to match Apple TV's $99 price point.



The move will reportedly cost the device maker some $34 million in one-time charges as it hopes to ?remove price as a barrier to broad consumer adoption.? The failed partnership with Google also contributed to a $29.6 million loss for Logitech during its fiscal first quarter, prompting the exit of chief executive Gerald P. Quindlen.







Looking ahead to the second half of the year, Kuo said his industry checks have turned up no evidence that Apple plans to push a hardware revision to the Apple TV into production during the third quarter. Instead, the Cupertino-based company will reportedly take a more measured approach to advancing the platform in 2011, relying instead on an Apple TV Software Update this fall that will allow devices such as the iPad 2 and upcoming iPhone 5 to beam their content to the big-screen.



The technology, dubbed AirPlay, essentially allows devices equipped with Apple's A5 processor and the forthcoming iOS 5.0 update to mirror their video content from supporting applications to HDTVs hooked up to an Apple TV. While ideal for sharing video with friends and family, the feature is even more significant for Apple's encroachment on the gaming market, as it will allow any iOS game developer to offer console-style gaming (demos below) by which the the iPhone or iPad transforms into a wireless controller, equipped with gyro sensors and touch-screen controls.











Caught in the crosshairs is troubled console maker Nintendo, which now plans to race to market with a competitive product called the Wii U -- a 6.2-inch touchscreen wireless controller with similar capabilities -- such as a gyro and camera -- that it claims was under development long before Apple introduced the iPad.



The world's largest video game maker revealed Thursday that it continues to bleed cash, posting a net loss of 25.5 billion yen ($324 million) for the three-month period ended June and prompting the company to slash the price of its 3DS handheld to $169.99 from $249.99 beginning August 12. And the outlook for the Kyoto, Japan-based firm's fiscal year doesn't fare much better. It's guiding net profit of 20 billion yen, down 82 percent from its previous outlook, on sales of 900 billion yen -- blaming the skid on a shortage of hit titles for the Wii and 3DS.







Meanwhile, Apple continues to struggle with the second prong of its Apple TV strategy: HD video content. Unlike the inaugural Apple TV that offered a trove of archived television content priced between $2 and $3 an episode, the company continues to face opposition from networks who feel the new Apple TV's $0.99 per episode HD rental model devalues their content, according to people familiar with the matter.



Over the past year, Apple has failed to reach licensing agreements with content producers that would have them join Fox and partner Disney, for which Apple chief executive Steve Jobs is a director and largest individual shareholder, in providing their television content to Apple TV users. As such, Apple is now reportedly in talks to grow its streaming video business through a potential acquisition of Hulu, an ad-supported streaming service that offers video content from NBC, ABC, USA, Bravo, FX, A&E, and numerous other television networks.



"[W]e love the product. It's clear that customers love the product," Apple chief operating office Tim Cook said this month of the Apple TV. "We really guided right when we went to the new Apple TV just last fall. But right now, it's still a hobby status that we're continuing to invest in it because we think that there is something there."
«134567

Comments

  • Reply 1 of 137
    solipsismsolipsism Posts: 25,726member
    1) So Apple is shipping more AppleTVs than Motorola can push tablets into channels. That's sad.



    2) I really hope they add an App Store/SDK to the AppleTV within the next year.
  • Reply 2 of 137
    applestudapplestud Posts: 367member
    Quote:
    Originally Posted by solipsism View Post


    1) So Apple is shipping more AppleTVs than Motorola can push tablets into channels. That's sad.



    2) I really hope they add an App Store/SDK to the AppleTV within the next year.



    why does the ATV need it's own SDK when developers can just make an iPad app instead? Mirroring.
  • Reply 3 of 137
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by AppleStud View Post


    why does the ATV need it's own SDK when developers can just make an iPad app instead? Mirroring.



    Do you really want to use an iPad for all apps on the AppleTV? Imagine if there was no native Netflix app but you had to mirror from your iPad to get Netflix to work. Besides now costing at least 6x as much as just an AppleTV you have a more complex setup that requires two devices when you just wanted to use one device.
  • Reply 4 of 137
    timuscatimusca Posts: 120member
    Quote:
    Originally Posted by AppleStud View Post


    why does the ATV need it's own SDK when developers can just make an iPad app instead? Mirroring.



    Because most ATV owners don't have an iPad and most iPad users don't have an ATV.



    That's some strange logic you've got there.
  • Reply 5 of 137
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by solipsism View Post


    Do you really want to use an iPad for all apps on the AppleTV? Imagine if there was no native Netflix app but you had to mirror from your iPad to get Netflix to work. Besides now costing at least 6x as much as just an AppleTV you have a more complex setup that requires two devices when you just wanted to use one device.



    Indeed - with a full SDK of it's own ATV could eat Wii's lunch.
  • Reply 6 of 137
    cxc273cxc273 Posts: 46member
    The Apple TV's got a lot of potential, but one of the big problems is that it's at the mercy of studios and networks for a lot of its streaming content. Having Netflix is huge, but I'd like to see Hulu, Pandora, and Amazon's VOD service as well, as unlikely as that may be. Finally, I'd like the Apple TV to be able to pull some of the other streams out there, like ESPN3.com or NPR.



    Some of that might be possible if Apple opens it up to app developers. That might also lead to more games and such on the device, which would be really interesting and exciting.
  • Reply 7 of 137
    gmcalpingmcalpin Posts: 266member
    Does anybody know if AirPlay would allow, say an iPad game to both stream to a TV and show separate video on the device itself — not just mirror the video from the iPad? (The result would be something akin to the WiiU's dual screen, which I think could allow for some very interesting ideas with apps/games.





    Quote:
    Originally Posted by cxc273


    Some of that might be possible if Apple opens it up to app developers. That might also lead to more games and such on the device, which would be really interesting and exciting.



    Definitely. Why Apple hasn't opened up the AppleTV to iOS devs is beyond me. The iPhone didn't become "The iPhone" (as we know it) until they opened it up to developers. The hardware is good! The software is just too limited as is. (Without jailbreaking.)
  • Reply 8 of 137
    melgrossmelgross Posts: 31,964member
    Quote:
    Originally Posted by solipsism View Post


    Do you really want to use an iPad for all apps on the AppleTV? Imagine if there was no native Netflix app but you had to mirror from your iPad to get Netflix to work. Besides now costing at least 6x as much as just an AppleTV you have a more complex setup that requires two devices when you just wanted to use one device.



    People are oversimplifying what it will take to run iOs apps on the aTv. How are you going to input to them. You NEED a touch screen. Right now, that means either an iPhone/Touch or an iPad. As far as I know, iOS has no API for a touch controller that isn't an iOS device.



    Quite frankly, it's goi g to be difficult to use a touch device while using a large Tv as the screen. I've tried Real Racing2 HD that way, and it's not easy. So you look at the course on the controller, or the car on the track on the monitor?



    They'll figure this all out eventually, but it may take some time.
  • Reply 9 of 137
    tallest skiltallest skil Posts: 43,399member
    But...
  • Reply 10 of 137
    msuberlymsuberly Posts: 226member
    I never understood the purpose of Google TV. Dishnetwork resells it for "only" $179. Apparently, it does nothing because returns now exceed sales.
  • Reply 11 of 137
    jukesjukes Posts: 213member
    give me a future-proof 1080p capability and I'd buy one in a second



    oh well, my super-power-innefficient PS3 is still fine
  • Reply 12 of 137
    melgrossmelgross Posts: 31,964member
    Quote:
    Originally Posted by gmcalpin View Post


    Does anybody know if AirPlay would allow, say an iPad game to both stream to a TV and show separate video on the device itself ? not just mirror the video from the iPad? (The result would be something akin to the WiiU's dual screen, which I think could allow for some very interesting ideas with apps/games.



    To a certain extent it can do that now, though. It depends on what you mean by "video". If you mean a different screen, then yes for sure. If you mean a different running video, then I'm not so sure.
  • Reply 13 of 137
    robin huberrobin huber Posts: 3,295member
    It's obvious that content providers want ATV to fail because, like the short-sighted music industry, they fear Apple's volume over cost-per-unit business model. The only sure solution I can see is for Apple to buy a media company (other than ABC and Fox). Then they can do what is being done to them--deny content access to their competitors.
  • Reply 14 of 137
    melgrossmelgross Posts: 31,964member
    Quote:
    Originally Posted by msuberly View Post


    I never understood the purpose of Google TV. Dishnetwork resells it for "only" $179. Apparently, it does nothing because returns now exceed sales.



    I found the "returns exceed sales" description to be a bit disturbing.
  • Reply 15 of 137
    melgrossmelgross Posts: 31,964member
    Quote:
    Originally Posted by jukes View Post


    give me a future-proof 1080p capability and I'd buy one in a second



    oh well, my super-power-innefficient PS3 is still fine



    What do you mean by a "future proof 1080p capability"? 1080p capability is just that.
  • Reply 16 of 137
    tallest skiltallest skil Posts: 43,399member
    Quote:
    Originally Posted by melgross View Post


    What do you mean by a "future proof 1080p capability"? 1080p capability is just that.



    He's pretending there are no resolutions higher than 1080p. His worldview doesn't allow Super Hi-Vision to exist.
  • Reply 17 of 137
    jukesjukes Posts: 213member
    Quote:
    Originally Posted by melgross View Post


    What do you mean by a "future proof 1080p capability"? 1080p capability is just that.



    I mean that the current ATV only seems to support 720p. There's almost no current content that I'd view through the ATV that is higher res, but I can already get some 1080i stuff through netflix streaming so it's on the way. It seems silly to buy an ATV without 1080p.
  • Reply 18 of 137
    jukesjukes Posts: 213member
    Quote:
    Originally Posted by Tallest Skil View Post


    He's pretending there are no resolutions higher than 1080p. His worldview doesn't allow Super Hi-Vision to exist.



    Nope. I'm pretending that I'm not likely to buy a higher res TV any time soon.
  • Reply 19 of 137
    How about Apple picks up the pace of its "measured approach" and release an iOS Apple TV App Store already?! aTV Flash (black) provides a few hints of where things could go...



    Oh, I also want access to the content *I* want, AKA live streaming of shows like Judge Andrew Napolitano's Freedom Watch, and Stossel, both on Fox Business channel...
  • Reply 20 of 137
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by melgross View Post


    People are oversimplifying what it will take to run iOs apps on the aTv. How are you going to input to them. You NEED a touch screen. Right now, that means either an iPhone/Touch or an iPad. As far as I know, iOS has no API for a touch controller that isn't an iOS device.



    Quite frankly, it's goi g to be difficult to use a touch device while using a large Tv as the screen. I've tried Real Racing2 HD that way, and it's not easy. So you look at the course on the controller, or the car on the track on the monitor?



    They'll figure this all out eventually, but it may take some time.



    That's where an SDK for AppleTV widgets would come in handy. You can still use your iDevice as a remote control, but you wouldn't have to. Mirroring everything between both devices simply isn't a great solution if they plan to grow the product.



    I'd like to see the AppleTV be an intermediary device between the cable/sat (and other HDMI-compatible devices) and the TV/receiver. This would let me use the AppleTV to switch inputs; have screen overlays for stocks, weather, incoming calls, FaceTime, Facebook, Twitter, etc. as I see fit; and not have to give up my current cable/sat setup to make it work. I don't think Apple is going to do this because they don't want to part of a chain but the whole chain, but I'd certainly like them to do it.
Sign In or Register to comment.