Another analyst is speculating that Apple will gain little from entering the television market.
The report points to the lack lustre sales of the existing Apple TV. “It has been five years since Apple introduced Apple TV into the market, and sales are still not picking up in absolute terms,” writes an unnamed author on Seeking Alpha.
“The slow-paced growth suggests there is an utter lack of interest in this product category, not only Apple TV,” the report states.
Another point against Apple entering the TV market: “The market for digital media players has clearly become very crowded.”
The final point of the report is that “Apple owns no content.” Instead, “Apple is a device-selling driven business”… “content sales account for a very small share of Apple's profits.”
The content owners are the ones who have the monopoly, “Apple's profit from Apple TV will again be largely driven by hardware sales.”
“Apple shareholders who put their hope on Apple TV to achieve a $1,000 stock price may be wishing for something with a very remote probability.”
A similar report back in May also suggested that Apple could struggle to make money in the smart television market, however, that report discussed actual televisions, predicting slow growth in that market, and suggesting that the size of a television set could be unhelpful to Apple since it will take up a lot of room in the Apple Stores.
(Macworld assessment: The report seems to miss the point that the excitement over the Apple Television is down to a belief that Apple will transform the existing market in the same way as it did the MP3 player, smartphone and tablet market. Perhaps the existing Apple TV should be seen as a trial product in the same way as the deal with Motorola that say Apple add iTunes to the Rokr was Apple’s first foray into the mobile phone market. As for Apple not making money from selling content – the success of the iOS App Store seems to negate that argument.)