Morgan Stanley: Rumored Apple iTV has huge potential; more than double the initial iPhone, iPad interest

“As per a [Morgan Stanley] survey concerning ‘Smart TV’ , there exists a significant potential from the launch of an iTV, with consumers willing to pay over 20 percent premiums, for the TV from their favorite brand Apple Inc.,” Jacob Wolinsky reports for ValueWalk. “Also, consumer’s interest level is ‘more than twice the initial interest in purchasing an iPhone and iPad.’ The survey included 1,568 heads of US households and was conducted in September.”

“The survey reveals that 3 percent of the respondents were unaware if they have a Smart TV and ‘those that do, actually use their TV to connect to the Internet less than those without a Smart TV.’ Highlighting the fact that many users were unhappy with their current TV sets, they were ready to pay a hefty premium for an Apple-branded Smart TV,” Wolinsky reports. “The survey points out a massive 13 billion unit opportunity in the US. With a premium of 20 percent, or $1,060 on average, ‘representing an incremental $13B revenue opportunity and $4.50 EPS at corporate margins, while global success could increase the opportunity by 4 xs,’ says the report.”

Wolinsky reports, “47 percent of the respondents were interested in buying an iTV, which is more than twice the 23 percent and 21 percent interested in purchasing an iPhone and an iPad, initially.”

Read more in the full article here.

Philip Elmer-DeWitt reports for Fortune, “46% of respondents were willing to pay over $1,000 for an iTV and 10% were willing to pay over $2,000. On average, respondents were willing to pony up $1,060, a 20% premium over the the average $884 they paid for their current TV set.”

“Respondents aged 18 to 29 — the largest consumers of video over the Internet — were willing to pay the most for iTV: a 32% premium over their current set,” P.E.D. reports. “Bottom line: iTV represents a $13 billion opportunity that could add $4.50 to Apple’s EPS.”

Read more in the full article here.

MacDailyNews Take: More than double the initial iPhone, iPad interest? BOOM!


  1. Right now, I can’t even afford an LCD TV in the size I’d like (46+) so any attempt by Apple to make me spend more (as in fantastic display, built-in TV, etc.) is pointless to me. Am I alone? Yes, I’d love a better interface for accessing broadcasting, yes, I’d like a built-in ATSC amplifier (yup, I watch OTA Digital almost exclusively), yes, I’d like easy

    1. Must confess I moved house recently and binned a trio of old-style CRT TVs in the process.

      Right now, I’m perfectly happy streaming on my iPad.

      Still, if iTV turns out to be an uber cool holodeck-style wowzer, then maybe (maybe) I might (might) spring for one.

  2. How can people be “interested” in a product they don’t know absolutely nothing about ? What are they actually polling: “I’m interested in anything Apple does ” ?
    Weird !

  3. This survey is completely useless. Comparing a non-existent, unannounced product to a known product (iPhone and iPad) is silly. People may say they are “interested” in the product, but only because they are curious to know what is different about an Apple TV rather than truly wanting to buy one.

    As for Smart TVs, most people don’t use their “smart” features because they are redundant, unnecessary, or simply don’t work well/are difficult to use. Surfing YouTube on a TV with a TV remote is not smart, easy or fun.

    What I want from my TV is a fantastic picture, easy and abundant connectivity options, and a great design so it looks good in my room. I don’t need a TV that surfs the web; I have an iPhone, iPad, and Mac for that. So unless Apple is going to truly innovate content delivery, there is no reason for Apple to make a TV set.

    1. I don’t think you really want ‘abundant connectivity’ but you really want quick easy intuitive access to content regardless of where it is from or what legacy device you used to use. You are limiting yourself to a present day paradigm and missing out what makes a great experience.

  4. We were just chatting via IRC at how it makes ZERO sense of Apple to ever sell an actual TV. Instead, Apple is more than likely going to stick with ‘the hockey puck’ device that simply uses any existing TV and its MONITOR. That is what makes sense.

    Apple targeting ANALysts/Rectalists are so laughable these days. Apparently anyone can play, and does. It didn’t used to be that way. But I’m on a jag comparing today’s Apple environment to living in a BARN. Instead of thoughtful and logical analysis we get ducks, chickens and lots of turkeys making a racket, drowning out any intelligent conversation going on in the background. 😕

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