Why Apple’s television will sell even faster than the iPad

“This week, Apple CEO Tim Cook explained how each major product sells faster than the last,” Louis Bedigian reports for Benzinga. “‘We’ve now — through the last quarter, I should say, which is just two years after we shipped the initial iPad — we’ve sold 67 million,’ Cook said during Apple’s Tuesday conference call, as quoted by Macworld. ‘To put that in some context, it took us 24 years to sell that many Macs, and five years for that many iPods, and over three years for that many iPhones, and we were extremely happy with the trajectory on all of those products.'”

“Eric Jackson, the founder and managing member of Ironfire Capital (a long/short and corporate governance-focused investment firm), expects that trend to continue with Apple’s first television,” Bedigian reports. “‘We live in this kind of sped up world,” Jackson told Benzinga. “The user base is there for Apple. When new, complementary devices get introduced by the company, the pickup is so quick. I think iTV is going to be even faster than the iPad. It’s gonna be, potentially, a pretty phenomenal product launch next year.'”

Bedigian reports, “Jackson said that he expects Apple to release its first television during the early months of 2013. ‘I think it’ll be a big seismic shift in the world of TV,’ he said… Jackson estimates that the TV will be somewhere in the 40- or 50-inch range and cost between $1,000 and $2,000. ‘Probably closer to $2,000,’ he said. ‘But I wouldn’t rule them out pricing it closer to $1,000 because I think they see this in the same light that they viewed iPad, where they took an aggressive pricing approach and knew that they couldn’t be matched from a supplier cost perspective, and therefore knew that the other competitors would be killing themselves for the next five years trying to compete and losing money while they’re at it.’ But even if the TV is sold for $1,000, Jackson still believes that Apple will get great margins.”

Much more in the full article here.

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

29 Comments

  1. Me thinks the secret sauce is still the humble Apple TV (3). Skate to where the square hockey puck will be. There you will find how Steve finally “cracked it”..

  2. I’m of mixed views about an Apple television. I love our Apple TV, and honestly don’t understand the need for Apple to also produce the big screen. These units are going to require delivery, and what extra value will the integrated unit offer over the attached Apple TV box? I’m sure some would like this, but it doesn’t excite me. My big screen HDTV is only a couple of years old, and works great, so I won’t be replacing it for years. I’m an original Apple fan from the early 80s and honestly don’t understand all the excitement. My Apple TV works great.

    1. Wonderful point.

      Either Apple converges the TV with the iMac or
      it PARTNERS with Sharp to embed a better AppleTV unit inside Sharps Televisions.

      Otherwise, I agree – Apple will not produce the screens of HDTVs.

    2. I generally agree except that Apple may come out with a high resolution TV. Barring that, there’s really no reason for them to come out with an actual screen- just sell Apple TV with Siri built in using an iPhone/iPad/iPod Touch as a remote.

      If it’s not broke, don’t fix it.

    3. I don’t think its going to be a big seller, nor have fast turnover

      I bought a $900 and a $4000 set 2 years ago. Neither are going to be changed anytime soon regardless of how good Apple’s TV is. For reference, I have 2 Mac Pros, a Mini, a Macbook Pro, an Iphone and an Ipad.

  3. Listen to me – there will not be an Apple Television. Apple has absolutely no need to get into the TV screen making business. The screens get old fast, the cost too much, can break, there are multiple display standards to deal with and yes, there will be something based on the humble Applie TV. That is the gateway drug to media consumption. No Apple Television set to hang on the wall like your current LCD or whatever.

    1. I’m not listening to you. I want a TV/device/iOS integrated super-resolution display/computer on my wall. Yeah- having all those things in one device sounds like such a bad idea.

      If you don’t like it, then just don’t frigging buy one. I do.

    1. So how are you going to connect this magical Apple tv to the iTunes store … over a cellular network such as Verizon or AT&T? Ugh. And I don’t even want to think about them charging for Video data. Until someone other than Telcos or CableCos control the “pipe” …. whatcha gonna do?

  4. An complete Apple HDTV will be a successful product, but I can’t see it selling at a faster pace than iPad (or iPhone).

    iPad entered a virtually nonexistent market. It was Apple’s answer to the (then) popular “netbook” products. iPads are interactive computing devices, and Apple’s refined touch-based interface and software made it highly appealing and difficult to imitate.

    An HDTV is a device for watching video playback. As such, interaction is more limited. You interact with it to start something, and then you watch that something for 30 minutes, an hour, or longer. Designing the user interface is Apple’s strength, but when opportunities for user interaction is more limited, Apple’s ability to differentiate will be more limited.

    Now, if Apple was releasing the world’s first HDTV into an nonexistent market, it would be a different story. But there are many HDTV products. And they all do a reasonably good job of displaying video content, which usually comes from an external “box” (such as a cable receiver).

    What Apple needs to make the “iTV” into a product that surpasses iPad in sales is significant differentiation from existing products/services. It needs to be MUCH more than the current Apple TV connected to a “regular” HDTV. I can’t see how Apple will create THAT much differentiation, but Apple surprises me all the time; it will make me very happy to be wrong.

  5. I do not think the Apple TV (not stb) IF built/sold by Apple will be less than $3K for the first 2 years (1st gen).
    When the ala carte subscription model is established by Apple, and the content suppliers are tripping over them selves to get on board, the price will come down as always. It will be the UI/apple “it just works experience” that will rule the day.
    That is when I would buy one. Not before.
    My Apple TV works just fine for now.

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