Sold Out: Analyst Predicts 4M Apple TVs per Year
The new Apple TV, after having been available for only a week, is backordered on Apple's online store with delays of 1-2 weeks, and is sold out in many stores across the US. Looking at these sales, an analyst with JMP Research is predicting a run rate of 4 million units sold per year, and saying the low price of $99 is "resonating with customers."
Eric Savitz writes on Barron's Tech Trader Daily blog
that shortages in San Francisco primpter JMP Research analyst Alex Gauna to check on supplies throughout the US. "We subsequently learned," he wrote in a letter to his clients, "that stores across the nation were selling out of their inventory on the same day as receipt in Boston, Chicago, New York and Washington D.C." Contacts at online retailers, Gauna adds, corroborate these findings, indicating that there's a run on the devices nationwide. He estimates a quarterly pace of "at least one-quarter to one-third that of the iPad, or in the range of a million units or more," which would add up to 4 million a year.
Gauna attributes much of the success to Apple's low price point. Though at $99, the Apple TV is far cheaper than any other A4-chip equipped device, the margin as a percentage of the total is low. The manufacturing analysis firm iSuppli took a look at the components identified in iFixit's teardown and determined that it cost about $64 to make
. The 16 GB iPhone 4, by comparison, costs $187
and retails for $499.
Despite the run on Apple TVs in the US, there are reportedly still some available at Apple Stores in Canada
. Apparently, this is due to limited non-US content for the device.