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