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

Posted:
in iPod + iTunes + AppleTV edited March 2014
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.
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Comments

  • Reply 1 of 52
    irelandireland Posts: 17,574member

    Nice.

  • Reply 2 of 52
    snovasnova Posts: 1,281member
    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.
  • Reply 3 of 52
    solipsismxsolipsismx Posts: 19,566member
    Horace Dediu wrote, "Where Apple TV's $1 billion revenues can be found: (17% of the grey area over last 4 quarters) "

    [IMG ALT=""]http://forums.appleinsider.com/content/type/61/id/38978/width/500/height/1000[/IMG]
  • Reply 4 of 52
    sflocalsflocal Posts: 4,548member
    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.
  • Reply 5 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).

  • Reply 6 of 52
    gatorguygatorguy Posts: 20,453member
    sflocal wrote: »
    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.
  • Reply 7 of 52
    herbapouherbapou Posts: 2,221member
    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.

  • Reply 8 of 52
    snovasnova Posts: 1,281member
    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? 

  • Reply 9 of 52
    solipsismxsolipsismx Posts: 19,566member
    herbapou wrote: »
    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.
  • Reply 10 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.
  • Reply 11 of 52
    snovasnova Posts: 1,281member
    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?

  • Reply 12 of 52
    snovasnova Posts: 1,281member
    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.

  • Reply 13 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.
  • Reply 14 of 52
    herbapouherbapou Posts: 2,221member
    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.

  • Reply 15 of 52
    gatorguygatorguy Posts: 20,453member
    snova wrote: »
    ??? What kind of devices did GoogleTV need to work with?

    Would GoogleTV offer content initiated from your Apple device? Maybe it did. Dunno.
  • Reply 16 of 52
    paxmanpaxman Posts: 4,594member
    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?
  • Reply 17 of 52
    dimmokdimmok Posts: 359member

    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

  • Reply 18 of 52
    herbapouherbapou Posts: 2,221member
    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.

  • Reply 19 of 52
    sockrolidsockrolid Posts: 2,788member

    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.

  • Reply 20 of 52
    snovasnova Posts: 1,281member
    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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