Apple might be able to announce its own smart TV, but it’s unlikely to have any impact because Apple will price it at the high end of the market, according to a research firm.
ITG Industry Investment Research analyst Joseph Fersedi based his outlook on the idea that Apple may goes after the high-end, or premium, segment of the TV market, which is a small market. “While it makes sense to think that Apple will go high-end in the TV business (as it has in computers, phones and tablets), our analysis suggests that Apple may need to go more mass market within a couple of years of launching a premium-priced TV product," Fersedi wrote, according to Investors.com.(More below...)
ITG asked consumers in the US whether they were interested in buying an Apple iTV. A third (34 per cent) of respondents with a household income greater than $50,000 a year that said they were likely to buy a TV set in the next 12 months said they'd buy an iTV based on Apple's brand alone. However, amongst lower-income families, 44 per cent said they would buy an iTV – but they may not be able to afford one, suggested Fersedi.
ITG also looks at the potential for Apple to make money from pay-TV services and movie rentals or purchases. ITG says pay-TV subscriptions generate $216 billion a year worldwide, while home video revenue totals $53 billion a year. However, Fersedi explained, this market is much harder to penetrate.
ITG expects that the rumoured iTV could increase Apple’s market cap by a mere 10%, or $60 billion.