Nearly a third of consumers say they'd suddenly be interested in a new TV if it came from Apple
Should Apple follow through with much rumored plans to enter the connected TV business, it would prompt nearly a third of able consumers to abandon their typical 7-year upgrade cycle and consider opening up their wallets early -- for the right price.
In a survey of 200 consumers in the midwest -- which PiperJaffray believes is an accurate representation of the broader US demographic with 95% confidence and a confidence interval of 7 -- 49% expressed earnest interest in an 42-inch Apple-branded television in the near term. But only 12% of those people said they'd maintain their interest if the product was priced around $1500.
More significant, however, is that 29% of respondents who said they weren't currently in the market for a new TV in the near term admitted that they'd suddenly be lured back into the market given the advent of a TV manufactured by Apple.
"The level of interest generated by the ecosystem potential shows how powerful the Apple ecosystem has become, as demonstrated by the fact that 67% of all survey respondents interested in the TV owned an iPhone, iPad, or both," said analyst Gene Munster. "The bigger theme that is emerging from this data point is Apple is becoming less a product and more of a platform company that consumers find increasingly more difficult to leave."
Still, Munster believes that pricing could ultimately stand out as the biggest impetus by which consumers weigh their purchasing decisions, especially given a trend over the past 7 years that has seen HDTV prices progressively trend lower.
"While we believe based on anecdotal evidence on iPhone, iPad and Mac sales, many consumers who responded with prices below $1,500 (average in this survey was $530) will be willing to go beyond their stated price range to purchase the product upon seeing it," he explained. "That said, there is a big gap between $530 and $1,500 which makes significant near term market share gains unlikely."
Should Apple manage to attract 10% of the US TV market during the first year, it would add 4% -- or more than $9 billion -- to the analyst's fiscal 2014 earnings estimates for the company of $231.8 billion.
Of those interested in a rumored Apple TV -- which Piper now believes won't materialize until mid- to late-2013, 21% said their interest was driven by Apple's ecosystem, 19% said an easy to use remote and 18% said internet connectivity.
In a survey of 200 consumers in the midwest -- which PiperJaffray believes is an accurate representation of the broader US demographic with 95% confidence and a confidence interval of 7 -- 49% expressed earnest interest in an 42-inch Apple-branded television in the near term. But only 12% of those people said they'd maintain their interest if the product was priced around $1500.
More significant, however, is that 29% of respondents who said they weren't currently in the market for a new TV in the near term admitted that they'd suddenly be lured back into the market given the advent of a TV manufactured by Apple.
"The level of interest generated by the ecosystem potential shows how powerful the Apple ecosystem has become, as demonstrated by the fact that 67% of all survey respondents interested in the TV owned an iPhone, iPad, or both," said analyst Gene Munster. "The bigger theme that is emerging from this data point is Apple is becoming less a product and more of a platform company that consumers find increasingly more difficult to leave."
Still, Munster believes that pricing could ultimately stand out as the biggest impetus by which consumers weigh their purchasing decisions, especially given a trend over the past 7 years that has seen HDTV prices progressively trend lower.
"While we believe based on anecdotal evidence on iPhone, iPad and Mac sales, many consumers who responded with prices below $1,500 (average in this survey was $530) will be willing to go beyond their stated price range to purchase the product upon seeing it," he explained. "That said, there is a big gap between $530 and $1,500 which makes significant near term market share gains unlikely."
Should Apple manage to attract 10% of the US TV market during the first year, it would add 4% -- or more than $9 billion -- to the analyst's fiscal 2014 earnings estimates for the company of $231.8 billion.
Of those interested in a rumored Apple TV -- which Piper now believes won't materialize until mid- to late-2013, 21% said their interest was driven by Apple's ecosystem, 19% said an easy to use remote and 18% said internet connectivity.
Comments
The key of course to the article is "the right price". The thing of course about the TV market is that every other manufacturer has already worked out the scale economies and already has the price as low as they can get. I just don't see Apple as getting any more of an advantage out there considering that it won't be bottom of the barrel pricing. It can't be
As long as it's a nice one, I'll buy it in the future when I can afford it.
Just don't get the parts from Samsung. My dad bought a 46 inch LCD about 18 months ago and it broke within 2 months. Samsung sent out a guy to repair it (under warranty), but it broke again a month later. So he took it back and bought a Samsung LED. It broke not to long again about 2 week out of warranty. Luckily, Samsung was nice enough to repair it anyway.
For 1000 bucks, it sure does break a lot. I think we I go to buy a TV in the future, it won't be Samsung; however, I have heard good things about them from people.
Apple will need a strong selling point to make high profit margins though.
The TV market is only interesting to Apple if a 42" Apple TV can be priced at $999 the minimum. I mean a Samsung 40" Smart TV basic model is being priced at around $650 right now, and the profit margin is really low. So for Apple to maintain let's say a 35% profit margin, they got to charge at least $999.
Really? The trial isn't enough news for PiperJaffray? They have to keep dumping the TV on us, too?
Anyone see a Samsung vs Apple lawsuit over TVs in the future? (assuming apple makes a TV)
Quote:
Originally Posted by Seankill
Anyone see a Samsung vs Apple lawsuit over TVs in the future? (assuming apple makes a TV)
Over what? The only thing they could sue over would be the Apple TV interface which Apple probably has patents over.
Sure I would be interested, but for that to happen Apple would need to roll existing Apple TV technology into it, recognize that TV's are expected to be in the household for 10 years and not be replaced every 3 years which is what Apple expects for the iPhone, iPad and Mac computers. The TV would have to be large enough 46-55" in size 1080p HD and of course be price competitive. Otherwise why bother getting a new TV if it costs $2-3k is only 40" and doesn't offer anything better than what we see today.
Quote:
Originally Posted by diddy
Over what? The only thing they could sue over would be the Apple TV interface which Apple probably has patents over.
Of course over the rectangular shape of the TV! /s
Seriously, will probably be on some patents of how signal is transmitted from 1 place to another, TV tuner internals, etc etc. No proof, but I'm sure Samsung have tons of patents on TV internals.
Quote:
Originally Posted by diddy
Over what? The only thing they could sue over would be the Apple TV interface which Apple probably has patents over.
You never know, if it is wildly successful, I can't understand why Samsung wouldn't, knowing them.
Quote:
Originally Posted by drobforever
Of course over the rectangular shape of the TV! /s
Seriously, will probably be on some patents of how signal is transmitted from 1 place to another, TV tuner internals, etc etc. No proof, but I'm sure Samsung have tons of patents on TV internals.
It it's anything standards essential Apple would get licenses when they get the boards and Samsung couldn't go after that - and that assumes that the patents haven't expired or anything.
TVs are commodities. You go into Best Buy and they have dozens of LEDs and Plasmas all hooked up to either some crappy signal or playing a super high res Blue ray disc. In either case it is impossible to evaluate them because the florescent lighting in the store, reflections, crappy signal and side by side models with who knows what crazy color settings that have been jacked around with. Apple would have to really make some clear differentiation other than an Apple logo to compete in that scene. I would imagine they would need to create a really ideal display area in the Apple retail stores.
Quote:
Apple is becoming less a product and more of a platform company that consumers find increasingly more difficult to leave.
I don't buy this line of reasoning. This makes it seem as if Apple come around to your home and forced you into their ecosystem with gun in hand. I have never talked to anyone who begrudgingly said, "God dammit, Apple is making me go buy an iPod, iMac, iPad and MacBook because I bought a LaserWriter back in 1993. They got me into their ecosystem and won't let me out. And I really want out. I hate them."
People, you have a choice. If you are "forced" into their ecosystem, that's probably a sign that you "want" to be there, and like what they're offering.
Quote:
Originally Posted by jd_in_sb
As soon as Apple releases the 2nd generation of their television set I will buy one. I'll probably skip 1.0
iOS-powered. Just upgrade that. Heck, I wouldn't be surprised if they offered WiFi and 3/4G versions just like the iPad - and allow Facetime via the TV.
Quote:
Originally Posted by Cyberzombie
iOS-powered. Just upgrade that. Heck, I wouldn't be surprised if they offered WiFi and 3/4G versions just like the iPad - and allow Facetime via the TV.
It would most certainly need wifi. 3G would be a waste. But the facetime is a good point.
Originally Posted by Cyberzombie
…3/4G versions…
What reason is there for a television to EVER connect to a telecom's network?
That exactly what the analyst and the tech pundits said about Apple entering the mobile phone market. Too many players that are already established, too little profit and exactly what could Apple bring?
Really good point. I hadnt thought of that!
No. Apple won't implement their software to look like Samsung. Samsung hasn't sued Apple over Apple TV have they?
They might do VoIP which is the way I would probably do it. It's less expensive, plus more carriers are offering VoIP.