Analyst sees FaceTime becoming killer app for Apple

Apple Online Store“Apple’s FaceTime didn’t launch as a killer app, but it may end up as one as the company broadens its distribution and floods the market with more devices supporting it. And, according to Barclays analyst Ben Reitzes, Apple is well on its way to achieving exactly that,” John Paczkowsk reports for AllThingsD.

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“Don’t underestimate FaceTime, Reitzes said in a note to clients today that suggests we’re at the beginnings of a FaceTime networking effect that will goose sales across many of Apple’s product lines, particularly if Apple adds support for the video conferencing feature to iPads and Macs, which seems likely,” Paczkowsk reports.

Paczkowsk reports, “Reitzes figures Apple will have sold some 63 million FaceTime devices by the end of fiscal 2011–40 million FaceTime-compatible iPhones, 15 million FaceTime-compatible iPods, and 8 million FaceTime-compatible iPads. And he says that number will more than double the following year.”

Full article here.

50 Comments

  1. As an elementary-age school kid in the mid-’60s, our class took a field trip to Chicago’s venerable Museum of Science and Industry. There was an exhibit sponsored by Bell Telephone that demonstrated the video phone of the future called the “PicturePhone”. – I was amazed.

    The service actually went live in NYC in July 1970. One year later, only 16 PicturePhones had been installed and 8 disconnected. Of those, only 12 were even able to dial outside the building, the others were merely being used for in-house intercoms. Needles to say, they pulled the plug on the PicturePhone, which faded into novel obscurity..

    Forty years later, July 2010, Apple introduces iPhone 4 with FaceTime. Maybe this time around, the ‘video-phone’ will be a success because we have a few more than just 16 phones out there.

    “Hello, this is the future calling again.. Will you answer this time?”

    .:.

  2. As an elementary-age school kid in the mid-’60s, our class took a field trip to Chicago’s venerable Museum of Science and Industry. There was an exhibit sponsored by Bell Telephone that demonstrated the video phone of the future called the “PicturePhone”. – I was amazed.

    The service actually went live in NYC in July 1970. One year later, only 16 PicturePhones had been installed and 8 disconnected. Of those, only 12 were even able to dial outside the building, the others were merely being used for in-house intercoms. Needles to say, they pulled the plug on the PicturePhone, which faded into novel obscurity..

    Forty years later, July 2010, Apple introduces iPhone 4 with FaceTime. Maybe this time around, the ‘video-phone’ will be a success because we have a few more than just 16 phones out there.

    “Hello, this is the future calling again.. Will you answer this time?”

    .:.

  3. @Sarasota, nice to meet you. I am a military spouse with one child across the country at college and another off next year. My family is also all across the country. I don’t see any of them on a regular basis and my husband is gone regularily. I have more reason than not to use facetime. I am waiting for the facetime capable ipad to purchase. This is a killer app in my book

  4. @Sarasota, nice to meet you. I am a military spouse with one child across the country at college and another off next year. My family is also all across the country. I don’t see any of them on a regular basis and my husband is gone regularily. I have more reason than not to use facetime. I am waiting for the facetime capable ipad to purchase. This is a killer app in my book

  5. Wasn’t Skype bought by eBay? Anywhooo, Skype uses a proprietary, non-standard codec. It’s not compatible with the SIP standard. I doubt Apple would buy it, but someone else might. I thought eBay had Skype up for sale.

  6. Wasn’t Skype bought by eBay? Anywhooo, Skype uses a proprietary, non-standard codec. It’s not compatible with the SIP standard. I doubt Apple would buy it, but someone else might. I thought eBay had Skype up for sale.

  7. @ chabig
    “Although I agree with Raitzes’ conclusion, his assertion that Apple will have only sold 8 million iPads by Sep 30, 2011 is laughable. They’ve probably sold that many already!”

    Not with FaceTIme. You need a camera.

    Best you reread the article.

  8. @ chabig
    “Although I agree with Raitzes’ conclusion, his assertion that Apple will have only sold 8 million iPads by Sep 30, 2011 is laughable. They’ve probably sold that many already!”

    Not with FaceTIme. You need a camera.

    Best you reread the article.

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