Analysts: Apple to ride Apple TV + iTunes ‘Trojan horse’ into living room

Apple Store“With Apple Inc. expected to roll out its Apple TV home media device this month after a slight delay, Wall Street analysts have begun to project what role the new gadget will play in consumers’ living rooms – and in Apple’s financial results,” Rex Crum reports for MarketWatch. “Apple shares rose as much as 2% to $91.55 in Monday trading after two analysts issued upbeat notes on the upcoming product.”

“Apple has sold more than 90 million iPod portable media players and has about 110 million active users of its iTunes online store, according to Piper Jaffray analyst Gene Munster. That customer base should ‘give Apple a significant early lead in the digital living room’ over Microsoft Corp.’s Media Center PCs that run the Windows operating system, Munster wrote in a research note,” Crum reports.

Crum reports, “Because the iTunes customer base is nearly 10 times larger than the estimated 12 million active users of Media Center PCs, the Apple TV could be ‘a Trojan horse’ that Apple can use to extend its dominance from portable digital players into the market for home media centers… Munster currently holds an outperform rating and a $124 price target on Apple’s stock.”

“Munster’s comments echoed those of ThinkEquity Partners analyst Jonathan Hoopes, who said Monday that even though the upcoming iPhone has claimed much of the Apple spotlight, ‘the potential is huge for this small (Apple TV) device,'” Crum reports. “Hoopes kept his buy rating and $120 price target on Apple’s stock unchanged.”

Full article here.

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  1. @ Tommy Boy

    A little anxious, maybe ?

    The difference is.. the last “VaporWare” I can remember being associated with Apple, was called “Copeland”… That was more than a couple years ago..

    A wise man once said …“.. Good things come to those who wait ..”

  2. They can’t right a Trojan Horse into the living room if nobody’s buying the Trojan Horse. Apple TV is a ridiculous product with zero interest from consumers. It isn’t even in Apple’s Top 10 list, and I can’t wait to laugh at its numbers on AppleTV is not a DVR, it’s not a DVD player, it’s not a game machine. The only frickin’ thing it does is stream iTunes content — it won’t even stream DVD’s you insert into your computer! This device is absolutely worthless! Nobody wants this and nobody needs this! OH, AND BY THE WAY — YOU’LL HAVE TO UPGRADE YOUR ENTIRE TELEVISION SET TO A HDTV, TOO. Absolutely ridiculous. Apple should be ASHAMED of themselves for coming up with a worthless product like this.

  3. Yeah, we’ve been calling iTunes a trojan horse ever since it was first released for Windows, haven’t we? And I keep waiting for the PC folks to start acting like something actually did hit ’em. Ah well .. soon they will, I keep telling myself.

    I’ll say this much .. if a large percentage of those dudes ever does truly get on board .. there’s a bunch of us that are likely to have to find a new line of patter, I’m suspecting.

  4. @ MacBill

    Judging by the reactions given by a lot of the posters here at MDN, I’d say your estimate is slightly askew..

    Who knows ? .. Could be the TV just might have more capabilities than what you suggest !

    I’m not yet ready to call it a “fad”… ’cause lots of pundits said that about the iPod, when it was first released !

  5. “Hoopes kept his buy rating and $120 price target on Apple’s stock unchanged.”

    Does anyone know the importance of this? Why do these guys always announce a ‘target price’? Are you suppose to sell at this price or are they just estimating what your stock will hopefully be worth some day?

    Anyone know how this works?

  6. Lately whenever analysts start trying to describe the net effect of Apple’s next thing, they’re basically describing a steamroller. That’s definitely the case here. Of course the hype tends to get bigger than life so there’s always a slight let down after the fact, but Apple is clearly in the running and I hope they continue to do above average in the long run. My personal hope, and the real litmus test from my pov, will be seeing the Macintosh pc become a lot more prolific – Looks like that may be beginning to happen as well.

  7. The AppleTV is a DVD player, in that is does what a DVD player does – but via content the user has in iTunes.

    While at this very moment, things are a bit sparce (out of TV content), it will soon have the following:

    1. HD movie downloads (and other HD content).
    2. Movie rentals (huge).
    3. Direct rentals and purchase from iTunes (eliminating using the computer, just order from your living-room).
    4. AppleTV is a DVR, in that the content is does access, can be rw,ff,paused or slow-motion-ed.

    The biggest issues for AppleTV are:
    1. Home bandwidth
    2. Negotiating rental terms with the studio’s
    3. Live Sports streaming and Live News.

    Outside of Live coverage, TV need no longer has a “season” or be watched on “Thursday night at 8 PM” etc… This is so old-school.

    Anyone who has a DVR can attest to live TV being quite lame, while understanding traditional TV schedules need not apply.

    When people discover they can pay for the shows they want and dump their $60 cable and dish bills, and come out a bit ahead with iTunes and AppleTV, it will hit mass adoption. Plus, users will have all the content when they want it, along with it being portable and view-able on a Computer with the ease Apple brings to the table.

    Granted, the live goods will be 2-3 years out, but some may be coming sooner than expected… ESPN anyone?!

    A gradual product that will only build in steam as the content and quality rivals and quickly passes anything cableTV and DishTV products can provide.

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