Apple Television Set May Double U.S. Household Spending on Apple Products

[Akshay Masand]

If Apple were to launch a branded television set, it could cause total average annual U.S. household spending on Apple products to double to $888 by 2015 according to a new projection. Analyst Katy Huberty with Morgan Stanley explained in a note to investors this week that Apple’s U.S. household spending doubled following the launch of the original iPhone, from $150 per year in 2007 to $295 in 2010. She now expects that the iPad will double the spending again to an average of $635 per household per year by 2013.

According to Huberty "given a 97% TV household penetration and a 61% broadband household penetration in the US along with an expected high price (and value) point, an Apple TV is likely to generate a similar increase in average household spend, with some help from iPad and iPhone growth." Her projections call for the average U.S. household with at least $10,000 in disposable income to spend about $888 on Apple products by the year 2015, which would be double the $444 average spent per year in 2011.

If Apple were to take a 10% share of global spending on televisions, including hardware, subscriptions, and advertising, it would represent $60 billion per year, or an incremental increase of $64 per household per year globally. Furthermore, it is expected that the initial impact of an Apple television on average household spending would likely be seen mostly in the U.S. The real growth potential remains outside of the U.S. though according to Huberty.

To reach this goal, she believes Apple needs to forge deals with more carrier partners internationally before release. As of right now, 77% of carriers in Asia, 78% in Eastern Europe, and 88% in Africa have no access to an iPhone. Regardless, it seems like there is so much hype behind the unannounced Apple television set that people are willing to pay premium without even knowing what features the product will have.

Source: AppleInsider

[GmAz]

Thats a big assumption with the 97% household penetration. I don't think its going to do well at all.

[Feanor64]

everyone has an iphone because of the contract prices lol apple gonna be offering apple tvs with contracts? lol it wont do that well by far dont be an idiot bro...if ppl just want apple products then why dont more ppl buy macs?

[mustard05]

everyone has an iphone because of the contract prices lol apple gonna be offering apple tvs with contracts?...if ppl just want apple products then why dont more ppl buy macs?

Exactly!!!

[LUFT5_THOR]

The iPhone is ok. The Mac is junk and I assume the tv wouldn't be much better.

[Slmchrist]

everyone has an iphone because of the contract prices lol apple gonna be offering apple tvs with contracts? lol it wont do that well by far dont be an idiot bro...if ppl just want apple products then why dont more ppl buy macs?

Ppl don't buy macs for the same reason everyone doesn't buy bmws, the price point is very high for macs and BMW alike. For the price of one Mac you could buy 2 nicely tweaked pc. I went from pc to Mac and would never go back.

The iPhone is ok. The Mac is junk and I assume the tv wouldn't be much better.

Opinions are like a** holes everybody has one! You got Mac envy and don't know it!!

[Feanor64]

Ppl don't buy macs for the same reason everyone doesn't buy bmws, the price point is very high for macs and BMW alike. For the price of one Mac you could buy 2 nicely tweaked pc. I went from pc to Mac and would never go back.



Opinions are like a** holes everybody has one! You got Mac envy and don't know it!!

bro if macs cost the same as pcs everyone would buy one ppl are on a budget thats why vizio tvs sell so well they are junk but they are really popular why because they are cheap compared to samsung and others aint gonna go buy a tv just cause its got a ****** apple on it lol i wouldnt if thats the case then WAIT STOP U MEAN TO TELL ME THAT THIS WHOLE TIME ATT VERIZON SPRINT THEY HAVE ALL BEEN LOSIN MONEY ON IPHONES FOR NO REASON???? u mean ppl will spend 600 bucks on a phone just because its got an apple on it!?! gimme a break dude ...

[Jupit3r]

Well who knows what Apple's "tv" will look like... It could a tv we never imagined and sell it at $1000... Who knows what Apple is thinking... We could be getting holographic projectors instead of a screen... Just wait for Apple to say something to make a remark about how much it will suck... Everyone said the iPad was an over sized iPod until it went on sale and people went crazy over it...

[klouud]

I've never been a big TV guy... but if Apple releases a good enough product, I will be very tempted to buy one of these. I really hope they bring the retina screen to the TV. My wife and I haven't updated our TV set in over 8 years... so its about time to upgrade.