Analyst sees 1 million Apple TV sales as ‘positive, but fairly immaterial’

Apple Online Store“Though the Apple TV ‘hobby’ is starting to take off, sales of the $99 set-top box just aren’t enough to have a major effect on Apple’s bottom line,” Neil Hughes reports for AppleInsider.

“Reacting to Apple’s announcement that the new Apple TV is expected to reach its one millionth sale this week, analyst Shaw Wu with Kaufman Bros. said in a note to investors on Wednesday that he views the figures as ‘positive, but fairly immaterial,'” Hughes reports. “If the device continues to sell a million units per quarter, it would amount to $400 million in annual revenue — just a drop in the bucket for a company expected to earn $88 billion in revenue in its fiscal year 2011.”

Hughes reports, “However, Wu said he believes the Apple TV is now positioned to become a ‘more material contributor and game changer in the TV space.’ But he believes a major catalyst for the set-top box would be the addition of an App Store, allowing users to download new applications for the Apple TV.”

Read more in the full article here.

23 Comments

  1. The Apple TV interface is simple and clean, the playable media is clearly defined as anything that will play in iTunes, and the vast iTunes ecosystem is well… vast. Those are challenges competitors must face.

    In my experience, I’ve found DNLA to be unreliable.

  2. funny how perspective makes people dumb.

    100 million is not insignificant just because they are expected to make $88b.

    That’s 1 million people hooked into the apple eco-system which brings a lot of other profits.

    maybe we’ll be able to rent all TV shows soon.

  3. So, when the AppleTV gets an app store and programers start turning the iPod touch, iPhone and iPads into multi player control pads for their games, how many AppleTV and apps will be sold? Still a hobby? This has already been demoed and works very well.

    Steve Ballmer, how well do you think those Xbox players will be selling? What do they cost? How much a game?

    Steve, it sucks to be you.

  4. Off course it will not have to much of an impact as far as Apple’s bottom line, but that is not what is newsworthy. What is important is that Apple it self felt that It had to make this figure public and the only reason I can see of making such a move is to allow potential developers know that it is selling well. Applications are coming to the Apple TV, it’s just a matter of Apple pulling the trigger.

  5. When it comes to profit they are underestimating a bit, they seem to forget te amount of money coming from rentals, seriously doubt that I am the only person renting from iTunes on my apple tv. Seriously doubt that majority only use it for netflix or streaming. However it is still just spare change to Apple. However it has set them up for changes to come. I remember when everyone was say this about the iPhone. Now look what it has become. It may just be a hobby right now, but when the time is right and Steve has firgued out how to bring about a revolution, it will no longer be a hobby. The apple tv is a great idea, it was a bit too early, luckily it has stood through and will come out a winner.

  6. It’s amazing that some of these “analysts” have jobs still after they continuously miss the mark. It’s the content stupid. Apple TV is just a portal to allow you to stream content from iTunes to your TV. Plain and simple, nothing more. Why do you think it’s so cheap? It’s not the hardware they are trying to make money off of… The only numbers that are important are how many devices that are out there, and the other thing is how many people (1 million) bought the Apple TV knowing AND expecting to purchase content.

  7. Guys … give him a break. He didn’t say the Apple TV is immaterial, he said its modest sales are immaterial to Apple’s bottom line. “… sales of the $99 set-top box just aren’t enough to have a major effect on Apple’s bottom line …”. No dissing of the product or the company, just a statement of fact. He could have said the same about any of several other products in the same vein. When you have half a dozen major product lines with double-digit percentages of your bottom line, your lesser products – valuable as they may be – won’t make a big dent in your bottom line. That doesn’t mean we don’t value them or that they are somehow unworthy.

  8. @diskgrinder

    anythings possible, although i’m skeptical of that.. not to mention completely different resolution/aspect ratio.

    The app store already exited for more than a year.. If Apple planned apps for tv, then why would they have not been released as a feature at launch?

    I’d like to see apps on tv, but with a brand new hardware revision and no onboard storage, i’m doubtful.. I hope i’m wrong..

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