“Every year there are winners and losers in the consumer electronics business. But rarely are they so acutely divided as they appear to be in 2007. Those products deemed winners not only won—they won big. Those that lost tended to lose big, too,” Arik Hesseldahl writes for BusinessWeek.
“Some winners will come as no surprise. Apple continued to dominate the mobile media player business, its iPod brand still a synonym for the entire category. The clear loser in this market was pretty much any company that dared challenge Apple on turf it has owned in an undisputed manner since 2003,” Hesseldahl writes.
“But Apple didn’t dominate in every market segment it entered. Selling downloadable TV episodes—it has sold 100 million of those in two years—is one thing. Selling gadgets that make those videos watchable on a TV set is quite another. Take AppleTV, an iTunes-connected TV accessory that, with sales clearly not taking off in an iPod way, Apple CEO Steve Jobs described as a ‘hobby,'” Hesseldahl writes.
MacDailyNews Take: Apple TV itself isn’t to blame. The box is just sitting there waiting for more compelling, higher quality content and, perhaps, more enticing options beyond direct sales of content that most people watch once. Whereas we want to buy and own our music, we want to be able to either subscribe (or maybe rent) TV shows and movies, with the option to buy the few that we’d like to watch multiple times. At least let us buy iTunes video content directly from the Apple TV! Apple needs to get the system developed (they may have it already in the lab) and either sell the content providers on the idea(s) or wait for them to finally get with the times. Apple TV and Apple could replace a sizable chunk of cable subscriptions, but, for now, our Apple TVs sit there showing photos from time to time, playing music perhaps, maybe some podcasts or YouTube vids, and only the occasional TV show or movie that we missed.
Hesseldahl continues, “The video game market also produced a surprise winner in 2007… More than 15 million Nintendo Wii consoles had been sold this year through October, according to iSuppli. That beats the 10.4 million Xbox systems and the 8.8 million PS3 consoles sold in the same period.”
Full article here.
In the accompanying article, BusinessWeek names Apple iPhone “Best Smartphone” (Worst: Palm Centro), Apple MacBook Pro and Mac Pro (tie) “Best PCs” (Worst: Dell’s Inspiron 1501 notebook), Philips Soundbar HTS8100 and Bose Lifestyle v30 (tie) “Best Home Entertainment Systems” (Worst: Apple TV), Pioneer’s Elite Blu-ray BDP-95FD “Best DVD Player” (Worst: Microsoft’s Xbox 360 HD DVD).
More categories and products in BusinessWeek’s full best and worst photo and text slideshow here.
[Thanks to MacDailyNews Reader “MacUser” for the heads up.]
My wish list:
Built-in DVR, slot loading DVD, game capabilities, HDMI pass through, more formats support, wireless web access and audio streaming to Airport Express.
And on a related note, high-def movie rentals from the iTS.
Um, that’s for the new Apple TV coming out in early 2008.
Wii + Wii Transfer = Apple TV
Well, at least enough of the Apple TV functionality to keep me from buying an Apple TV. It’s a shame that the little box has been so kneecapped.
Apple TV had to be placed into the market, even though it had no way to achieve large sales — immediately. It is there to stimulate the web into dumping proprietary protocols, such as Microsoft’s codecs for multimedia and web sites that only work with Internet Explorer. Together with the Mac becoming more popular and the iPhone phenomenon, Apple TV is slowly getting the web to become more Apple friendly. Note that Google has committed to making YouTube content available under h.264. All of the dimwitted pundits will be eating crow when the tipping point comes and Apple TV takes off.
Take a look at the CNET Windows Vista Page! Incredible add displayed!
http://www.cnet.com/windows-vista.html
At our home we use the AppleTV every day, it is great for children’s videos, playing your Itunes music library thru your home entertainement center, displaying family photos, watching/listening to podcasts and catching up on missed TV shows.
In my opinion, Apple TV bashers have never used it, or do not have the correct setup in their home. For my family, the AppleTV is great!
@Touch
Perfect ad placement! Thanks for finding it.
I Love my AppleTV. I use it one my the primary A/V system in my house. I can show pictures with ease on my LCD television and I have visual control over all my music. Sometimes I’ll miss recording one of my favorite shows and it’s great to download it from iTunes and watch it on my large LCD. To go w/out an AppleTV would be simular to switching back to a regular phone instead of my iPhone or watching TV w/out a DVR.
The correct setup? Isn’t it a bit presumptuous to suggest that people who have no use for the AppleTV have a “wrong” setup in their home?
I have a Mac connected to my home theater system- what purpose would an AppleTV serve me? Oh, wait- I could turn that on instead of the Mac that would sit right next to it. That would be useful.
All sarcasm aside, when the AppleTV offers a DVR solution, it will become a much more compelling product. As long as it just replays media that’s already on my Mac, it offers no new features for me.
He hardly mentions the iPhone in the article.
2 Apple TV’s serve music, photos, TV shows and over 300 movies to the 2 HDTV’s in our house.
They work flawlessly and we wouldn’t give them up for any swiss army knife, do everything not very well, Microsoft, Sony or HP powered piece of crap.
If The Studios weren’t involved in a power play with Apple, Apple TV would have been The Next Big Thing.
I have all may kids shows and movies ripped and on my apple TV and it is so easy for my kids to just turn it on and watch what they want – Finally no scratched DVDs. Woo Hoo – I want to hook one up to the video system in my car so they can have all the programming at their fingertips.. It really is a great simple device.
Apple TV is not selling but I wouldn’t say it is dead in the water. It is for Apple to add some little things here and there (movie rental, HD content) and it will take off. It’s just a matter of time. Perhaps Macworld ’08 will reveal new aspects of this product.
Another thing to consider: Lots of products launched by Apple have failed; such as the Newton, or the cube. That didn’t mean Apple gave on selling gadgets (iPhone) and computers… if Apple TV is really doomed, then Apple will come back with an evolution of it, and will make NOISE !!!
@Touch
It would have achieved large sales immediately if it had DVR capabilities from the start.
If it would have sold in significant numbers, Apple would have more leverage with content providers to get more, high quality content onto iTMS.
This is one case where we see the downside to SJ’s “vision”. HE doesn’t think it should have DVR, so it doesn’t, even though it is clear that is what the customer wants.
Note to SJ: The customer actually does sometimes know what he wants.
The problem with DVR is that yo need to have content to record. In my area over the air is pitiful and the cable company does not offer a reasonable deal on cable cards. I have an Elgato DVR and I never use it. I do not agree that the DVR is the missing component.
AppleTV and iTunes need movie rentals and at DVD quality.
iThink the AppleTV is great – but iTunes lacks movie content. This could be fixed if the AppleTV had a dvd player on it (that would have been awesome!), or by iTunes having movies available in HD for rent (even better if the price is right). As it stands, it lacks only in delivery of movies.
Not to bash MDNs take… but… I can’t see Apple TV in any way shape or form do the following – “Apple TV and Apple could replace a sizable chunk of cable subscriptions”. That is laughable is more ways than one. I don’t know of anyone that has a TV just for sitcoms… The Television combined with Cable/Sat is much more powerful than just Movies and sitcoms. I think everyone is missing the point of what the Apple TV is suppose to do. It does exactly what it is advertised to do and I love mine. Would I buy shows from Itunes? No, I just download from Lime Wire and watch on my 23″ monitor. No more searching for DVDs or CDs in my 200 disc jukebox. All on Apple TV. Would I ever cancel my HD cable service becasue Apple changed what their device? Sure, when Apple is going to give me my House phone, Internet Access, and offer as many channels as my my cable service provider. Perhaps you should rethink that comment, MDN.
DVR, DVR, DVR!
Can it be any clearer? The Apple TV desperately needs DVR, or most people won’t even consider it. Without DVR, most don’t even know what it is.
@Critic (regarding DVR)
You’re right SJ doesn’t think Apple TV needs a DVR, and he’s right… You have to understand where Apple/Jobs are coming from with Apple Tv. It’s not a product meant to compete with DVD players and Tivo boxes, it’s an enitrely new business model.. He sees “on demand” as the future, buy what you want, when you want it.
Apple sells content via iTunes, so it only makes sense that they are not going to release a product that records for free the same content that they want you to buy..
DVR’s only give strength to the concept of cable and network television. Steve Jobs sees a future without Cable and network television.
Will it happen? Who knows, there is still a long way to go, but Apple TV is the first Apple released device that aligns with that future vision of content on demand.
@Ampar (regarding built in DVD player)
Apple tv is a new business model with hopes of killing physical media. It’s all about digital media. Much like there are no CD players on an iPod, there should be no DVD players on Apple TV. We are reaching a point where the need for physical media and optical drives will become extinct. With iPods, iPhones, Apple TV and other devices there will no longer be a need for them.
The Blu-ray vs. HD-Dvd war will be stillborn before a winner is ever declared, the future is digital, not optical..
Apple will be the first to remove optical readers from it’s computers.
“I have all may kids shows and movies ripped and on my apple TV and it is so easy for my kids to just turn it on and watch what they want – Finally no scratched DVDs.”
Question. I don’t have any CD’s ripped to my computer. (I’ve been too lazy) What is the approximate file size for a typical movie?
@critic
I think it’s more a view of people having more then one TV in the house, Apple TV is designed to have a central location for the Storage of your media (mini with several 500gb firewire drives, add in eyetv for DVR functionality and with leopards shared desktop features (or VNC for those playing it Tiger) you have your media server) and a multitude of locations actually using your content (including multiple Apple TV’s and any other Mac’s in the house if you have a shared movies folder).
I think it’s a great idea and if I had the finances for it I’d have one, and a mini for storage/dvr. Until then it’s my dream…
How can one equate poor sales to a poor product?
Zune… ok I take that back.
The TV is certainly a 1.0 product. It’s ALMOST there on some levels.
At this point, Mac mini with an external hard drive and wireless keyboard/mouse seems like a FAR better solution than TV.
Maybe they’ll merge the mac mini, an Airport Extreme and TV. THAT could be a nice thing. Call it the Mac3 (as in cubed)… the Mac mini Media Server?
As TV goes digital and analog is turned off, the masses are NOT buying new TVs, but are getting set top boxes. AppleTV needs:
• a cable to downscale to current standard def TVs with choice of SCART or RCA connectors.
• the option of running without a computer i.e. purchase online
• subscriptions/rentals
• cheap single TV shows, and not the expensive ones we are starting to see at $2-4 per show
• an Apple network ‘aggregator’ of channels so we can subscribe to a theme we like
• VideoCast channels
• USB-based DVD, USB-based BlueRay, USB-based free-to-air tuner options, USB-based external drive, USB-based
• plus web surfing, iChat, games would be nice
• HD option
I have just purchased an Apple TV (Purchased it from the refurbished site and received brand new unit, could Apple be dumping to clear inventory?).
The only problem I have had and I am not the only one is the lag time from when I press a button on the remote till the Apple TV reacts, some times 30+ seconds. My guess is Apple has the OS set to spin down the HD to save power and I am having to wait for it to spin back up. HD content on iTunes would be nice.
I also have the Xbox 360 HD DVD drive (or should I say had, it died on me last week after 10 months, I called MS and was informed that because it is an accessory it only has a 90 day warranty WHAT A LOAD OF CRAP!!! This is a $200 piece of hardware not a $40 controller. I see why it was rated the way it is.