“I believe Apple TV is selling according to Apple’s expectations at present, which is somewhat north of 100,000 units sold this year. Why so few? Because Apple hasn’t yet introduced all the content and services that fulfill its vision for the product,” Carl Howe writes for Blackfriars’ Marketing.
Howe writes, “I believe that Apple has three features that will fulfill Steve Jobs claim that the Apple TV is destined to be ‘the new DVD player’ for consumers:”
• Movie rentals
• High-definition content
• Encrypted peer-to-peer (P2P) Internet distribution
Howe writes, “Why are we so bullish on Apple TV rather than joining the chorus claiming it’s just a losing product? It’s simple: unlike most of Apple’s products, Apple TV revenue is being deferred over 24 months to allow for software upgrades, just as the iPhone is. If it were just a product that missed the mark (unlikely, but always possible), Apple never would never have planned to defer the revenue from selling it; it would have treated it like an iPod and recorded the one-time revenue. But the 24-month amortization of the revenue indicates that Apple plans at least two years of enhancements and upgrades to the device.”
Howe believes that Apple TV could be worth more than $1.8 billion in fiscal 2009 for Apple.
More in the full article here.