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.

Related articles:
Will Apple TV be even bigger than iPhone? – March 19, 2007
Apple adds 720p Apple TV high-definition export mode to QuickTime – March 19, 2007
Apple planning to buy Miglia to add DVR capabilities to iTunes and Apple TV? – March 17, 2007
Miglia debuts TVMAX+ Mac PVR, TV tuner, content provider for iPod, iPhone or Apple TV – March 16, 2007
Piper Jaffray expects 2 million Apple TV units to be sold in 2007 – March 16, 2007
Apple TV ships – March 15, 2007
Solution providers expect Apple TV to be hot seller – March 15, 2007
Apple TV could help kill traditional TV ads – March 14, 2007
Miglia responds to Elgato’s termination of EyeTV license – March 14, 2007
Elgato terminates EyeTV licensing agreement with Miglia – March 12, 2007
Apple TV manufacturing ramp up to begin as early as today – March 12, 2007
Why Apple TV is more important than iPhone – March 12, 2007
Apple TV concept may eventually catch on with consumers – March 12, 2007
Apple CFO talks Apple TV, iPhone, Leopard and retail (link to full transcript) – March 07, 2007
PC Magazine: Why Apple TV matters – February 23, 2007
Bear Stearns: Apple TV and iPhone have changed the Apple story for the better – February 21, 2007
Deutsche Bank: Apple TV could take 30% of set-top box market within a few years – February 21, 2007
How do Apple TV and Elgato’s EyeTV work together? – February 16, 2007
Apple embraces casual gaming; iPhone, Apple TV to join iPod as gaming devices – February 09, 2007
Former GM of Microsoft’s Xbox Live Arcade: Apple TV to become video game console – February 08, 2007
ZDNet’s Graham: Apple TV hits a number of sweet spots, poised to make a big impact – January 25, 2007
Is Apple out to kill cable television? – January 25, 2007
RUMOR: Apple TV sales blowing away Apple’s internal expectations – January 25, 2007
Steve Jobs: Apple TV is the ‘DVD player for the 21st century’ – January 22, 2007
Apple TV beats out iPod, hits top spot on Apple Store sales chart – January 19, 2007
Report: first batch of 100,000 Apple TVs to ship this month – January 11, 2007
Steve Jobs moves to control the living room with Apple TV – January 10, 2007
Analyst Bajarin: Apple’s iPhone and Apple TV are industry game changers – January 09, 2007
Apple premieres Apple TV: movies, TV shows, music & photos on your big screen TV – January 09, 2007
RUMOR: Apple may enter video game market – December 05, 2006
Could Apple become king of game consoles? – September 26, 2006

26 Comments

  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 Amazon.com. 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.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.