Hobby turns hit: Apple TV on pace to sell 1 million units per quarter

Apple Online Store“Apple (AAPL) seems to have a modest hit on its hands with the new Apple TV box,” Eric Savitz reports for Barron’s.

MacDailyNews Take: That “box” is so tiny, it’s more like a “puck.” (Plus, it’s snappy compared to our old Apple TV units!)

Savitz reports, “JMP Research analyst Alex Gauna writes this morning that the device is selling out in many of the company’s U.S. retail stores. The analyst reports that checks find that ‘the new Apple TV product has continued to sell out in Apple stores across the nation after its launch last week.'”

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“Gauna believes Apple TV is selling at a pace at least one quarter to one third that of the iPad, or at least 1 million units a quarter,” Savitz reports. “He says the $99 price point ‘is resonating with consumers.'”

Full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

54 Comments

  1. This has to be Apple’s Greatest Year!

    But I will comment that Apple made one blunder with the Apple TV v2. Limiting the audio to strictly digital output forced me to cancel my order. If only they had tossed in RCA analog audio out, I could have hooked it up to my home stereo and I’d be enjoying it right now.

    What I did instead was buy a new, clearance priced (!), Apple TV v1.1, 160 GB, which has analog audio out. Happiness shall follow…

  2. This has to be Apple’s Greatest Year!

    But I will comment that Apple made one blunder with the Apple TV v2. Limiting the audio to strictly digital output forced me to cancel my order. If only they had tossed in RCA analog audio out, I could have hooked it up to my home stereo and I’d be enjoying it right now.

    What I did instead was buy a new, clearance priced (!), Apple TV v1.1, 160 GB, which has analog audio out. Happiness shall follow…

  3. @Dinjin201

    I doubt they’ll remove it. Hoping they’ll update the interface on tv though.

    And why didn’t Apple include some of the screen saver options from the Mac, such as iTunes artwork? That would be a big improvement over animals and flowers.

    Include an Apple product and advertising slideshow option for all of us Apple fans. Apple has very memorable advertising. i’d love to see Think Different print ads float by on my tv. Sure I could do it myself but that’s not the point.

  4. @Dinjin201

    I doubt they’ll remove it. Hoping they’ll update the interface on tv though.

    And why didn’t Apple include some of the screen saver options from the Mac, such as iTunes artwork? That would be a big improvement over animals and flowers.

    Include an Apple product and advertising slideshow option for all of us Apple fans. Apple has very memorable advertising. i’d love to see Think Different print ads float by on my tv. Sure I could do it myself but that’s not the point.

  5. $30 profit per unit X one million units per quarter = $30 million per quarter

    And that’s PROFIT, not revenue. That’s a healthy profit for a brand new product; as manufacturing (and other) costs decrease over time, it will be even better. Pretty good for a “hobby.” Certainly self-sustaining toward Apple’s Apple TV end game (whatever it happens to be).

  6. $30 profit per unit X one million units per quarter = $30 million per quarter

    And that’s PROFIT, not revenue. That’s a healthy profit for a brand new product; as manufacturing (and other) costs decrease over time, it will be even better. Pretty good for a “hobby.” Certainly self-sustaining toward Apple’s Apple TV end game (whatever it happens to be).

  7. @ken1w,
    I don’t think we know the profit. It’s been reported that the cost of goods sold (COGS) is ~$62. So, the “contribution” is probably just above $30/unit — price minus variable costs (or mostly cost of goods sold in this case). Outside, we won’t have an exact figure for R&D, marketing, other corporate “peanut-buttered” expenses. There’s probably a healthy profit in there, but it’s not price minus COGS.

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