Apple TV, imagined by Steve Jobs to be Apple's "fourth leg," now becomes its sixth

Posted:
in iPod + iTunes + AppleTV edited January 2014
While Steve Jobs described Apple TV as potentially becoming Apple's "fourth leg" supporting the company in 2007, there are now five major business "legs" ahead of it.

Apple TV


As noted by Horace Dediu of Asymco, just by itself Apple's newly isolated iTunes/Software/Services business "begins to look increasingly as a viable 'leg stool' upon which Apple rests."

That observation is an allusion to a comment made by Steve Jobs back in 2007, when he expressed, at the introduction of the iPhone and Apple TV, that, "we hope the iPhone is the third leg on our chair, and maybe one day Apple TV will be the fourth leg."

At the time, Jobs described Apple has having two legs, "the Mac business, which is a $10 billion business, and music, our iPod and iTunes business, which is $10 billion."

From two legs under $20 billion to six legs supporting $156 billion

Today, five years later, Apple's "stool" has more than four legs, but the company has shifted how it counts them. In 2012, the Mac grew into a $23.2 billion business, while the iPhone has grown into a $78.7 billion enterprise. The iPad, which didn't appear until 2010, is now a $30.9 billion "leg."

Apple Revised Revenues 2012


However, rather than counting iTunes along with iPod sales, Apple has separated them. That leaves iPods alone as a $5.6 billion business (which has rapidly been cannibalized by iPhones and iPads delivering iPod features via an app).

Separately, iTunes media, apps and other software and related licensing and services revenue has grown into a $12.9 billion business, alongside a $5.2 billion Accessories leg.

Categorized within "Accessories" are all of Apple's hardware peripherals and first and third party accessories (ranging from headphones to cases). This includes sales of Apple TV.

So rather than being Apple's "fourth leg" as Jobs imagined it might in 2007, Apple TV is filling out part of its sixth leg, narrowly behind the iPod but less than half the size of iTunes/Software/Services (which is now roughly half the size of both the iPad and Mac legs, which are both less than half the size of the iPhone).

Does Apple need new legs, or can it grow bigger ones?

A variety of observers are hoping that Apple will launch an entirely new product "leg" represented by TVs, watches, or other speculative new hardware products.

However, the blockbuster growth of Apple's existing six major businesses are already making once invisible products (like software and accessory sales) nearly as large in terms of revenue ($18 billion) as Apple's entire business was in 2006 ($19.32 billion).
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Comments

  • Reply 1 of 39
    MacProMacPro Posts: 18,373member
    Meanwhile the uninformed masses out there think Apple is going down the tubes based on what they see and hear in the media. I just got back from a BBQ on the beach where I overheard a discussion about how a Korean company was wiping Apple out. I kept my mouth filled with beer and burgers and said nothing. :\
  • Reply 2 of 39


    The sixth leg may yet be advertising / search / maps.


     


    Apple needs to:


    1.  Get Eddy Cue to improve Maps and make it the default on Mac OS X and iOS devices.


    2.  Get William Stasior to integrate an advanced search engine and advertising into SIRI and make it the default search in OS X and iOS devices.


    3.  Apple TV can then become the 7th leg with items 1 & 2 integrated.


     


    Time will tell.

  • Reply 3 of 39
    oomuoomu Posts: 128member
    "1. Get Eddy Cue to improve Maps and make it the default on Mac OS X and iOS devices."

    it is the default on ios.

    and I could say, Os X too, with iPhoto for example (and the fact, never Os X had a "default" maps choice)


    "2. Get William Stasior to integrate an advanced search engine and advertising into SIRI and make it the default search in OS X and iOS devices."

    hu what ? mayyyybe.. even if I love siri, there is no reason I should do all my search by speaking.

    "Time will tell" than Apple will do something no pundit or blogs could predict correctly.
  • Reply 4 of 39
    dasanman69dasanman69 Posts: 12,985member
    Meanwhile the uninformed masses out there think Apple is going down the tubes based on what they see and hear in the media. I just got back from a BBQ on the beach where I overheard a discussion about how a Korean company was wiping Apple out. I kept my mouth filled with beer and burgers and said nothing. :\

    How many burgers and beers did you have? Good job though because correcting a fool is folly within itself.
  • Reply 5 of 39
    iqatedoiqatedo Posts: 1,612member

    Quote:

    Originally Posted by digitalclips View Post



    Meanwhile the uninformed masses out there think Apple is going down the tubes based on what they see and hear in the media. I just got back from a BBQ on the beach where I overheard a discussion about how a Korean company was wiping Apple out. I kept my mouth filled with beer and burgers and said nothing. image


     


    I think that it would be fair to state that 'Nokia (in its day) was/is the pride of Finland'. Why is Apple not the pride of the US? (Notwithstanding the huge pride that many Americans have in the company.) I simply do not understand Apple bashing in the US. Perhaps the attitude stems from the days when a now almost irrelevant software company dominated the local market for computer operating systems and some applications. Now however, the competition is from a foreign conglomerate.

  • Reply 6 of 39
    jragostajragosta Posts: 10,473member
    iqatedo wrote: »
    I think that it would be fair to state that 'Nokia (in its day) was/is the pride of Finland'. Why is Apple not the pride of the US? (Notwithstanding the huge pride that many Americans have in the company.) I simply do not understand Apple bashing in the US. Perhaps the attitude stems from the days when a now almost irrelevant software company dominated the local market for computer operating systems and some applications. Now however, the competition is from a foreign conglomerate.

    There are a number of factors:

    1. 10-20 years ago, Apple-bashing was very popular. Microsoft had such a lock on the PC market that anyone using Macs was perceived as a weirdo. Add to that the fact that corporate IT managers were so well paid by Microsoft (not cash, but perks) and anything from Apple was anathema. There is a massive bully characteristic in the US (perhaps elsewhere, too) that anything different becomes a victim.

    2. There seem to be a significant number of people who are paid by Apple's competitors to badmouth them on forums like this one.

    3. A number of analysts apparently shorted Apple stock and have been doing their best to drive the stock down.

    4. There's a big effort to favor underdogs - and Apple stopped being the underdog about 5 years ago.
  • Reply 7 of 39
    dasanman69dasanman69 Posts: 12,985member
    iqatedo wrote: »
    I think that it would be fair to state that 'Nokia (in its day) was/is the pride of Finland'. Why is Apple not the pride of the US? (Notwithstanding the huge pride that many Americans have in the company.) I simply do not understand Apple bashing in the US. Perhaps the attitude stems from the days when a now almost irrelevant software company dominated the local market for computer operating systems and some applications. Now however, the competition is from a foreign conglomerate.

    What else do the Finnish have to be proud of? Vodka and Angry Birds
  • Reply 8 of 39

    Quote:

    Originally Posted by digitalclips View Post



    Meanwhile the uninformed masses out there think Apple is going down the tubes based on what they see and hear in the media. I just got back from a BBQ on the beach where I overheard a discussion about how a Korean company was wiping Apple out. I kept my mouth filled with beer and burgers and said nothing. image


     


    Agree. But more importantly...I am in Tampa, was my invitation to the beach BBQ lost or what?  :-)

  • Reply 9 of 39
    iqatedoiqatedo Posts: 1,612member

    Quote:

    Originally Posted by dasanman69 View Post





    What else do the Finnish have to be proud of? Vodka and Angry Birds


    I don't know much about Finland but a country that could start up a company such as Nokia has to be pretty capable/competent. image

  • Reply 10 of 39

    Quote:

    Originally Posted by IQatEdo View Post


     


    I think that it would be fair to state that 'Nokia (in its day) was/is the pride of Finland'. Why is Apple not the pride of the US? (Notwithstanding the huge pride that many Americans have in the company.) I simply do not understand Apple bashing in the US. Perhaps the attitude stems from the days when a now almost irrelevant software company dominated the local market for computer operating systems and some applications. Now however, the competition is from a foreign conglomerate.



     


    Apple was always an innovator. It's a testament to the quality of the people at Apple that even it the darkest days, when it was run by clueless folks, it was still able to produce some pretty innovative stuff. Anyway, I think innovation can be hard for people to understand. This combined with some overly greedy days helped to obscure what apple was doing. Then there was recession, the rise of conservatism, anti-intellectualism, and the Walmart ethos, which all worked against Apple. When Steve came back he was way more experience and smarter, plus the underdog thing, but with another big downturn and the associated rise in simple thinking, there's a new wave of anti-Appleism. This time though, more people understand Apple's value proposition, so it's less of a big deal.


    But, haters gonna hate!

  • Reply 11 of 39
    hftshfts Posts: 386member


    I think Apple needs to make a more concerted effort in moving away from all things google.


    They have already started with Maps. However this will take time.


    In the meanwhile they could improve Siri, so that it interacts much more with iOS.


    Ensure Siri does not use google at all.


    Buy Wolfram and Yelp, or invest in them.


    To me, Siri is central to all things Apple, perhaps in a few years it will have improved to such an extent that would really make it your own personal assistant.


    Make the creation of text books much simplier, incorporate "intelligent" templates so those not so inclined in the areas of programming could utilise its best features, those of interactivity.


     


    A question, does the google Maps App on iDevices in any way collect data to feed back to google ?

  • Reply 12 of 39
    dasanman69dasanman69 Posts: 12,985member
    jragosta wrote: »

    2. There seem to be a significant number of people who are paid by Apple's competitors to badmouth them on forums like this one.

    Please tell me that you don't really believe that. If you have any positive proof of that claim I'd love to see. Me, I just think people like being a'holes
  • Reply 13 of 39
    iqatedoiqatedo Posts: 1,612member

    Quote:

    Originally Posted by jragosta View Post





    There are a number of factors:



    1. 10-20 years ago, Apple-bashing was very popular. Microsoft had such a lock on the PC market that anyone using Macs was perceived as a weirdo. Add to that the fact that corporate IT managers were so well paid by Microsoft (not cash, but perks) and anything from Apple was anathema. There is a massive bully characteristic in the US (perhaps elsewhere, too) that anything different becomes a victim.



    2. There seem to be a significant number of people who are paid by Apple's competitors to badmouth them on forums like this one.



    3. A number of analysts apparently shorted Apple stock and have been doing their best to drive the stock down.



    4. There's a big effort to favor underdogs - and Apple stopped being the underdog about 5 years ago.


     


    Thanks, I understand that. In respect of point number 2, the complexion of AI has changed hugely with the disaffected signing up to bash Apple. I don't have time for such as these, I have about 120 members on my ignore list.


     


    All the best.

  • Reply 14 of 39
    froodfrood Posts: 771member


    Two more legs to grow before Apple can claim "Spider" status

  • Reply 15 of 39
    Apple stock right now is a blind, three-legged monkey. The only way Apple's share price will go up to where it belongs is the company would have to become a centipede. I still can't get over why Google stock is worth $300 more a share than Apple or for that matter Intuitive Surgical shares are worth $100 more than Apple. Supposedly, and this is the way it really looks is that Microsoft's P/E is higher than Apple's because Microsoft has greater growth potential than Apple. Where is all this growth of Microsoft coming from? It's already pretty high in desktop market share and it doesn't seem to be gaining more. I know I don't understand much about company value, but things that should be common sense, don't seem to make any sense on Wall Street.

    Is Google considered an underdog that it deserves to be favored so much? Google seems to be a pretty strong company and has been for years. As for Americans bashing home-grown companies and products it really has been a common thing for years. Americans support anything that will save them money and I suppose that is a global constant.
  • Reply 16 of 39
    dasanman69dasanman69 Posts: 12,985member
    iqatedo wrote: »
    I don't know much about Finland but a country that could start up a company such as Nokia has to be pretty capable/competent. :\

    I was being facetious.
  • Reply 17 of 39
    iqatedoiqatedo Posts: 1,612member

    Quote:

    Originally Posted by dasanman69 View Post





    I was being facetious.


    Gotcha! (There was no risk of you making my ignore list however image)

  • Reply 18 of 39
    dasanman69dasanman69 Posts: 12,985member
    hfts wrote: »
    A question, does the google Maps App on iDevices in any way collect data to feed back to google ?

    I'm pretty sure it does, but it's anonymously. Apple wouldn't have approved the app if it did otherwise.
  • Reply 19 of 39
    dasanman69dasanman69 Posts: 12,985member
    iqatedo wrote: »
    Gotcha! (There was no risk of you making my ignore list however :lol: )

    Give me time, I'm sure I'll piss you off eventually. ;)
  • Reply 20 of 39
    stefstef Posts: 87member
    Dilger and Dediu. Analysis doesn't get any better.

    Legs? I want wheels. An Apple IPlug vehicle.
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