“Apple’s set-top box device for consuming digital media, expected to hit stores next week, has at least one analyst optimistic that it will be a DVD killer,” Scott Martin reports for Red Herring.
Martin reports, “Apple TV could also haul in billions of dollars in sales within a few years, according to Deutsche Bank analyst Chris Whitmore.”
“‘It’s conceivable’ that Apple’s living room entertainment box—rival to Microsoft’s Xbox—could carve out 20 to 30 percent of a $26 billion market in a few years, Mr. Whitmore said Tuesday in a report,” Martin reports.
“That could “drive $5-7B in incremental revenue and $0.50-plus in EPS” for Apple, he wrote,” Martin reports. “Apple stands to first gain from the roughly 40 million people who use iTunes, but Apple TV will eventually eat into the business of makers of DVD and CD players, according to Deutsche Bank.”
Full article here.
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RUMOR: Apple may enter video game market – December 05, 2006
Could Apple become king of game consoles? – September 26, 2006
XBox competitor?
And now AAPL is really taking off!
Deutsche Bank-
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is that the female version of a sperm bank?
I just don’t see this happening, but well, I have been wrong before.
Everything is going digital. Physical media is not going to be associated with music and video offerings anymore. Disc media will be overthrown by solid state flash memory for storage and archiving. There will be no more need for CDs or DVD’s or the mechanical drives that use them.
Apple was a leader in removing the floppy drive from computers years ago, I’d put money on it that within the next 5 years the optical drive is removed as well!
Eh, doubt it. An expensive box that does nothing more than stream stuff from iTunes isn’t going to take over the world. Particularly when it won’t even connect to relatively new televisions b/c of the incompatible connectors on the back. AppleTV has NO appeal to any mainstream consumer.
With a good (reliable – as in OS X) computer, fast internet, and AppleTV you have every TV/radio show, games, music and films available in every room of every home.
Bill Gates’ dream is going to be realized by Steve Jobs. If that isn’t justice I’m a Frenchman !
As much as I hate to say it, the poor TV compatibility is going to be the biggest issue. I may be fairly behind the times because I still have a standard Phillips CTR television but I’m pretty sure that there’s plenty more like me. This box requires a widescreen and component or HDMI connection, which I don’t have on any television in my home. Unless someone can tell me how to get that component to RCA adapter, it’s just not happening for me. I’d love to get this device but can’t spring for a TV too. Maybe in a couple of years when the rest of us catch up? 🙁
Agreed. The lack of a S-Video or Composite output on this box is a bit backwards. I know Apple are all for dumping legacy stuff, but how come I can plug in my brand new MacBook Pro into my regular TV, but not the AppleTV?
Joke.
Stream from my computer (iTunes) to my TV at crap quality? I don´t think AppleTV is going to make much of a dent.
Gotta´ turn my computer on upstairs in office to stream a show to my TV in the basement? Ain´t gonna´ happen.
All AppleTV is about is Apple – it is not designed for the consumer it is designed to trap you into the Applecontrolme way.
if rumours are correct, leopard will unleash all sorts of excitement with the appleTV. i imagine the iphone will interact with it too…
as for composite/rca connections, people will upgrade their televisions sooner than later at this point in the game so i agree that its definitely legacy and going the way of the floppy disc. i also agree with loki capret, optical drive gone before we know it. can’t wait. i also can’t wait for the appleTV i ordered the day it was made available!
Where all the posters that like to lambast the analysts?
TV needs a rethink, methinks.
Remember when Apple killed the floppy drive —
Remember when Apple pushed FireWire into the main stream —
Remember when Apple created the iPod and pretty much is killing the CD
The point is to push people forward. If you don’t have a TV that has an HD input, you will soon. This just makes another reason for you to go and buy one.
To some extent the video quality issue is going to hold back a fair amount of business. However another large share of the market won’t care allowing Apple to gain a strong initial foothold on the emerging market.
Fortunately the video quality issues will be fairly easy to upgrade as increased high bandwidth allows HD (or at least DVD quality Video) to be offered.
so in the long run if Apple stays with the current standard it will be a problem, but there’s no reason at all to suspect they won’t move to adopt higher quality wireless video , and that will present a hug e problem for traditional DVD market.
Wheeeaaa-
My TV is too old. Why don’t they make it for old TVs. I don’t have the connections. Sheesh- Qwitcha bitchin.
The FCC is forcing the digital standard. People are buying digital TVs like crazy. Fogies that have crappy old TVs probably wouldn’t buy AppleTV anyway.
So shut the hell up you wankers.
MDN- “coming” As in- “Digital is coming so buy in or GTF outta the way.”
Joey has it right. All you folks complaining about the lack of legacy outputs, or the video quality, are misssing the point. I already stream TVs and movies from two Minis all over my house using iTunes sharing. And the so-called “crap” quality is absolutely acceptable to my wife and all 4 daughters. For me, my aTV will be a godsend, becasuse it will substantially improve the experience and make it even easier. You really don’t get the CE busioness, do you? If it was about the ighest quality, we would never taker the first step. You think all those folks in Best Buy are plunking down for the Pioneer 1080p Elite series of plasma units? No, they are not. They are buying whatever their budget permits for the biggest screen they can affford to put in any given room in their house. And those interested in an aTV will make sure they get an HDMI set. Apple’s aTV is just Apple’s first shot across the bow; there will be more. And the next generations of the aTV and the iTS will supply and stream higher quality. And they will probably be less expensive. And they will make many complainers bith and piss and moan because their first generation purchase is now outmoded. But they will continue to drive Apple adoption. And as far as I am concerned tyrone, that’s a good thing.
Apple is providing an avenue to connect your computer with your other media without embedding a computer in your TV. Apple’s Airport Express served the same function for audio only.
I have consolidated all of my audio in iTunes and I am working on consolidating my photos and movies, as well. My Mac will serve as the storage and server for this data, and I am using external drives and writable media to back up that data and keep it safe from hurricanes and such.
The Apple TV meshes very well in that strategy for me.
I can only speculate about Apple’s reasons for omitting composite and S-video from Apple TV. My guess is that primary reason is that Jobs does not like old, legacy interfaces. Another possible reason is that Apple intends the Apple TV to be used to stream DRM-protected material such as purchased digital movies. In that case, HDMI will be required to establish the “trusted” handshake. Finally, the inclusion of composite and S-video jacks would increase cost and might not fit well on the form factor that was selected.
Clearly Apple is somewhat limiting the market for the Apple TV. But component inputs have been common on TVs for several years, and all new HDTVs of which I am aware are shipping with HDMI. Apple is targeting the people who can afford to purchase those new TVs.
Apple TV v1.0 pretty much sucks as a set-top box replacement. All that’s missing is HDTV 1080p quality and a disk large enough for DVR functionality. Pretty much everything required for a great product.
That said, v2.0 could correct these horrible mistakes.
Let us hope that the deal with the devil (at&t) included streaming HD quality video to the Apple TV over at&t broadband networks (DSL now, fiber later). Apple can build the box that at&t needs to kill the cable companies once and for all. It would be a coup for both Apple and at&t.
yeah seriously xbox?… xbox = gaming system, apple = pretty much an advanced hard drive, similiar but not comparable, they might be competitors, but both are a different market areas, not sure if this guy is correct. Apple tv does look sweet though, only it has limited movie selection, I’ll probably get it or something similar, but not for another year.
Finally, some of the analysts are starting to “get it” about Apple. On one product line after another, Apple’s vision is now becoming clear. For their competitors it is like seeing the massive iceberg emerge from the fog and realize that the steering on their version of the Titanic can’t get them out of the way. Get your money into AAPL if you have not done so.
AppleTV isn’t really about the past or even the present. It’s about the future.
As more and more LCD and plasma widescreen TV are sold worldwide, the appeal of AppleTV will grow. It won’t be long before HDMI-ready TV’s outsell CRT based ones; I give it 3-5 years tops.
The world is much different Out of the US.
I live in Japan and you cannot even buy a TV which is not HighDef in the electrical stores. This has been the case for almost 2 years. My friend here has a 5 year old HighDef TV.