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Is Apple TV Apple’s Most Important Product?

February 25, 2012 by  
Filed under Features & Editorials

 

Strange but true: 3rd generation iPad and Apple TVs will be announced next month. You should be more excited about the latter…

Is Apple TV Apple’s Most Important Product?

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There is a lot of excitement about 7 March, but it is focused on the wrong product. While the headlines speculate upon the possibility of Tim Cook unveiling a fatter iPad 3 or even iPad 2S, an arguably far more important product is also tipped to take to the stage: a new Apple TV.

In purely financial terms this sounds like a ludicrous statement. In January Apple reported huge financial results which revealed sales of 15.43 million iPads in just 14 weeks up to 31 December. It represented a growth of 111 per cent over the same period in 2010 and nearly tripled the 5.2m Macs sold over the same period. A post PC era indeed. Furthermore iPhone sales were reported at 37.04m, an even bigger 128 per cent leap year on year. To quote Tim Cook: “We’re thrilled with our outstanding results and record-breaking sales of iPhones, iPads and Macs”. What of the Apple TV? It wasn’t even mentioned.

224561 in an e mail to a customer apple ceo tim cook assured that the company Is Apple TV Apples Most Important Product?
Except this isn’t entirely true. Cook was quizzed about the omission of Apple TV figures by Piper Jaffray analyst Gene Munster in follow up financial call. “The Apple TV product is doing actually very well,” Cook admitted. “In the last fiscal year that ended in September we sold a bit above 2.8 million units, and just in the past quarter we set a new quarterly record for Apple TV at over 1.4 million.” That said, “in the scheme of things, if you [check] the revenues, we still classify this as a hobby” he added. Again financially speaking Cook is right, 1.4m $99 Apple TVs (admittedly £99 in the UK) would generate just $140m compared to the $2.5bn for the iPad, $6.6bn for the Mac and $9bn for the iPhone.
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Interestingly, given Apple’s famous marketing rhetoric, Cook continued to play down the Apple TV. “I think it’s a fantastic product,” he said “and we continue to pull the strings to see where it takes us” but then the guard slipped: “if you’re using the latest one… I don’t know about you, but I couldn’t live without it.” Taken as a whole this paints an unusually convoluted picture for a company so polished in its presentation: 50 per cent of all sales in the last three months, hobby, see where it takes us, I couldn’t live without it. Anyone might think Apple is trying to hide something? Continue reading

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