Analyst: ‘Apple laying groundwork for next frontier in home entertainment’

“Analysts who follow Apple Computer Inc. say it is no surprise the company has already sold 1 million videos through its new iTunes Music Store service,” Rex Crum reports for MarketWatch. “‘No one had any doubt they would reach 1 million (downloads),’ said Shaw Wu, of American Technology Research. ‘But I think the speed of adoption is ahead of expectations. It’s a good sign for Apple, and its strategy.'”

“Investors appeared to have taken Apple’s plans to heart, bidding up the company’s shares by $3.01, or more than 5%, to $57.50 in Monday trading. The stock earlier reached a 52-week high of $57.71,” Crum reports. “Gene Munster, of Piper Jaffray, said it’s important to consider just what Apple is offering, how consumers have responded, and how video content providers need to look at Apple as a consumer-electronic force beyond the iPod and its flagship iMac personal computer. ‘What Apple’s doing is laying the groundwork for the next frontier in home entertainment,’ said Gene Munster, of Piper Jaffray.”

Crum reports, “Apple Chief Executive Steve Jobs wasted little time in letting content providers know his company’s strategy, and calling up them to realize the strength of Apple’s role in the video market. In a statement announcing the 1 million downloads, Jobs said Apple’s next challenge ‘is to broaden our content offerings so that customers can enjoy watching more videos on their computers and new iPods.’ Munster said, ‘What Jobs has done, is put out an open invitation to content providers. Apple’s showing that the demand is out there, and they (content providers) need to see that their customers are coming to Apple.'”

Full article here.

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Related articles:
The Motley Fool: Apple has done it again – this time with video – October 31, 2005
Apple in discussions with U.S. television networks to provide more iTunes video content – October 31, 2005
Apple’s iTunes Music Store sells over one million videos in under 20 days – October 31, 2005


  1. go Steve! it is great to see Him stomping the bejeesus out of little billy and all his ilk. i really hope that Apple has some sort of component style box waiting in the wings that will allow storage of one’s entire music, pictures, and now video collection, that will play natively on one’s large screen television and thru the stereo. it would be cool to have a single box to play CDs and DVDs, and whatever else comes down the road. a kind of MacMini on steroids, with an iPod dock installed, and a complete output jackfield. that would be sweet.

  2. Shaw Wu, Gene Munster. Are there no other analysts out there?? Aren’t these the guys who spread the hype about iPod sales, which when it did not come true, tanked the stock by 10%??? Shaw, and Gene: get a life and go analyze someone else. I don’t want your “expectations” to screw up my money!

  3. ‘What Apple’s doing is laying the groundwork for the next frontier in home entertainment,’ said Gene Munster, of Piper Jaffray.”


    I wish I could get paid for stating the obvious.

  4. How soon before the others copy itunes with video content?

    Hope itunes gets some of these other networks to hop on.
    There is so much content out there just withing to be offered.
    I can’t believe only Disney is getting on the bandwagon.

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