“Apple has roughly $40 billion in cash and securities, and many shareholders are wondering what it plans to do with its war chest,” Madway reports. “It recently made two relatively small acquisitions, buying mobile ad firm Quattro Wireless and music subscription service Lala.”
“Apple is preparing to launch its newest device, the iPad tablet computer, in the coming weeks. Cook said the iPad will be sold directly by Apple, and in some indirect channels with ‘assisted sales,’ such as Best Buy,” Madway reports. “Cook praised the iPad data pricing plan to be offered in the United States by carrier AT&T Inc. as ‘revolutionary,’ and brushed aside a question about what others would have to do become a carrier for the product. ‘I wouldn’t want to speculate about what else somebody would have to do to join the party.'”
“Cook conceded that [Apple TV] was ‘still a hobby’ but said the company believes in it and will continue to invest,” Madway reports. “The COO said Apple plans to open around 50 retail stores this year, at the top of its expected range.”
Full article here.
MacDailyNews Take: Again with the “hobby.” We don’t have much to criticize when it comes to Cook, but please stop referring to Apple TV as a “hobby.” The reason why Apple TV has sold “only” around 7 million units lies somewhere between content providers not offering enough reasonably-priced content to Apple TV and Apple treating the device like a red-headed stepchild.
When your cable company-issued DVR inevitably screws up, Apple TV is invaluable. When you want to catch a movie without any hassle, Apple TV is great (rentals more so than purchases, which are priced too high). For sharing music, home movies, YouTube content, podcasts, and photos, it’s excellent, too. Why Apple either belittles the device as a “hobby” or just completely ignores it and fails to promote it is beyond us.
We have Apple TVs. We use Apple TVs. We love our Apple TVs. Apple TVs are great devices that do many things well. It sells itself to people who see us run it through its paces. Why Apple hates their own product remains a maddening mystery to us.
Here’s a plan, Apple (and this goes for everyone from Steve Jobs on down):
1. Stop referring to your product as a “hobby.” You’re not just talking to analysts; everybody hears you. You’re denigrating the product for no reason. Why don’t you just come out and say “don’t buy it?” Idiocy happens at Apple, too; thankfully, it’s rare.
2. Start – gasp – actually promoting Apple TV and maybe you’ll even surprise yourselves by actually selling units beyond the relative trickle to those who are extremely-in-the-know and who sell your product for you via word-of-mouth alone.
By the way, Apple, if you make a TV ad, it helps to actually run it:
Direct link via YouTube here.
[Thanks to MacDailyNews Reader “Lynn W.” for the heads up.]
Reading MDN is a hobby.
I think Apple either doesn’t know what to do with AppleTV, or it has a definite plan which can’t be realized yet due to the cost of hardware or content issues.
My guess is Apple really doesn’t know what to do with AppleTV, because to expand capabilities like adding a DVR creates a whole slew of other issues, including programming guides, etc., which may be more than Apple wants to take on at the moment or which may increase the cost too much to make the device viable.
@ bizlaw “My guess is Apple really doesn’t know what to do with AppleTV”
I agree. So they should release the SDK (they must use one internally) and let developers create downloadable apps for it and see what ‘sticks’ apart from limited content.
Viewing the iPhone/iPad screen that is in your hand is one alternative if you could sync iPhone apps to it for a starter. Apple wouldn’t even need to support a separate AppleTV SDK in this scenario.
I agree about AppleTV. I LOVE my AppleTVs (I have two – one in the Living Room, one in my Bedroom).
Because of people seeing me use my AppleTVs, I know of 6 other people who have bought one, and each of them claim multiple people they know have bought one after seeing theirs in action.
The product really does sell itself, as long as someone who knows how to use it can show people what it can do. Just putting one in an Apple Store (where most of the employees do NOT know how to use it) is not helping sell them. I was in a Best Buy recently and saw one connected to an HDTV. While I was looking at it, a Best Buy employee proceeded to tell me what a piece of crap it was. When I told him I had two and loved them, he asked me to show him what it could do. I did, and he told me that was more training that he had ever received on how to use it.
Apple hates the AppleTV because it has sold nowhere near 7 million units (an analysts guess). They don’t promote it because they are going to drop it.
It’s very simple.
Cook isn’t fanboy enough for MDN. Classic.
I think the only thing keeping Apple TV from taking off is content. Apple was a little naive and thought getting content deals worked out for the Apple TV would come after the networks saw how capable it is.
Apple didn’t realize the sway cable and satellite companies have with the networks. Cable and satellite companies definitely DON’T want their content available on Apple TV and are using their considerable influence to keep it that way.
It seems like Hulu (and at least one network) are excited about getting their content on the iPad. Maybe the iPad will be the back door that eventually helps Apple get that content on Apple TV.
I think Apple TV will be a success, but not in the near future. 🙁
That MDN guy telling Cook what to do. Now THAT’S rich! LOL`
If The executives were a little bit more enthusiastic about the product, just like the attention they give to the iPhone and the iPad, and not merely calling it a hobby, the product can actually sell really well, more than the 7 million sold.
And seriously, enough with the “we” and “us” crap. What is this? The Enderle Group?
@HolyMackerel,
You are absolutely right. If Apple TV just mirrored an iPhone (and later an iPad) and used the iPhone as the controller my kids would drop the Wii and Playstation with their outrageously expensive games.
Why Apple doesn’t put the iPhone OS on AppleTV is a mystery to me.
How ancient is that ad could have at least used and iPod touch and iPhone and not too mention the White plastic iMac
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TV- I believe Apple has a roadmap that involves a certain structure in pricing for content. Since they have run into several roadblocks, they just keep it on the backburner waiting for the next domino to fall, then chip away at the next obstacle, until they get to the point where they can open the floodgates and push more uses onto the AppleTV.
I think the iPad is part of the puzzle.
It is annoying for them to leave it dangling out there on a limb, and I was about ready to replace mine with a Mini.
Thankfully the last update fixed my problem with it disappearing from iTunes.
i bet Steve J. thinks ATV is a “hobby” because he has not yet finalized how to re-invent the standard TV screen UI it uses like every other TV accessory – a button-based click cursor moving up/down/sideways.
that is a primitive UI, but has been the only kind since the first VCR on-screen controls back in the 80’s.
many have suggested a touch screen remote control instead that could be paired with ATV. like an iPod touch. but of course that would add substantial cost.
betcha that Apple is working on a “dual option” ATV OS/UI right now, where you could either do it that old way, or instead opt to use your iPhone/Touch/iPad as the remote with an entirely new and different on-screen UI.
(this will also require updating the ATV OS – still Tiger – and its processor – to be another custom chip?).
betcha Apple launches this new ATV this fall, and says it is no longer a “hobby.”
betcha Steve J. instead announces Apple is “reinventing TV.”
If you find the TV meets your needs, that’s great. I you say TVs do a lot of things well (I don’t own one so I can’t really say), that’s fine.,
But there’s one thing I know it doesn’t do at all, that is absolutely essential before I would seriously consider getting one.
It has to record/replay broadcast hi-def TV for time-shifting.
I refuse to pay for something (missed TV shows) I can get free and in better (1080p) quality, too.
I choose to really Think Different.
I choose to not transfer money from my wallet to Apples via a device that’s less capable than it should be.
AppleTV is crippled. Without FullHD content, who cares?
Netflix serves me just fine. I opted for Blu-Ray disks over DVD and I’m happy to wait if I must.
I’m getting a Mac mini to permantly connect to my HDTV. I don’t use iPhoto, so AppleTV is simply too limited for my needs.
Who says they never ran it?! I saw that ad several times when it aired like 3 years ago!
It’s all about the pipe. When the pipe gets bigger, then the hobby becomes a real business.
Listen to the whole Q&A;- quite fascinating — at
http://www.apple.com/quicktime/qtv/goldmansachs10/
Well – I finally got my first HDTV for Christmas. (Late to the party, I know) I always thought that I’d immediately buy an Apple TV. But after looking at what I could do with it, it didn’t justify the price.
Here’s why:
– iPhone
I already rent iTunes movies on my iMac (I’ve never bought a DVD in my life) and sync them to my iPhone and I already have the cables to play them on the Hi-Def. Ya, I know, a little more work but “not that big of a deal.”
– Roku.
This little $99 box lets me stream thousands of movies (for free) from Netflix. (with $9 monthly account of course, but I’ve had Netflix for years anyway) Plus – I can rent New Release Hi-Def movies from Amazon and it also gives me Pandora, Flickr feeds, and tons of other free channels.
– Slingbox Pro HD.
I’m buying this next. Just so I can watch hi-def live and recorded TV on my iPhone and iPad.
I own LOTS of Apple products and software, but for me, Roku and Slingbox and Netflix have them beat.
Disclaimer:
I’m a sucker for Apple stuff – just ask my daughter who told her class on the day iPad was announced, “Oh – I’m sure my dad will be standing in line for this! Apple has him wrapped around his little finger!”
So – if Apple can’t sell one to me – they’ve gotta’ be doing something wrong.
This is just an idea but maybe they should strike a deal with netflix. i know they are a competing content distributor but they could provide a lot of content.
How about taking that war chest and paying a dividend you cheap bastard?
I think TT nailed it there.
By the way MDN 2.0 is soooo much better now. Especially commenting box. It’s rooooomier.
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I bought a Mac Mini instead of an Apple TV because it I wanted more than just a iTunes conduit. The mac mini serves video to my HDTV from iTunes, Netflix, DVD etc. It serves as my media storage device and is also connected to a second monitor with a wireless keyboard and mouse to operate as a fully functional mac.
I couldn’t justify spending over $200 on a device like the AppleTV with such limited functionality.
If Apple were to sell them for $100 bucks then I would be all over one (or two).
TT has a good point. All of Apple’s stuff is probably being developed to work together. The iPad / iPhone will be great media controllers for devices like the AppleTV.
Got an Apple TV and got rid of cable…
The ability to surf the different networks and buy from the couch (not having to be in in iTunes – can’t buy from front row) made the decision over the Mac Mini for me.
Now I can buy only the programs I want (very few anyways) and save money vs cable.
Apple TV fits my needs my pretty good.