TV

Apple Phone Key to Apple TV Success

Monday, January 9th, 2012 | Business | No Comments

AppleThe Apple iPhone4 is the key to the success and imminence of the upcoming Apple TV (or iTV).

Everywhere you look online, it’s rumors about the upcoming Apple iTV.

Why is the Apple TV inevitable?

Other than it being mentioned by Steve Jobs in his biography as the next frontier for Apple, it’s just smart business.

There are 1.4 billion TV’s around the world.  On average a TV costs about $700.  That is an approximate market of about $1 trillion.

There are 5.3 billion mobile phones around the world.  The average mobile phone cost (to consumers) around $100.  That’s a market of $0.5 trillion.

With the average cable bill upwards of $75 a month, there is a huge gap for Apple to fill with it’s digital delivery.  Customers are abandoning cable more and more often because of the high cable bills, and the availability of alternatives.

In order to compete with Microsoft, who has sold 57.6 million XBox units, for the coveted “set top” position (center of the home theater) — Apple has to step up their game.  The AppleTV (in it’s current form, essentially an iTunes extender) has sold a paltry 2 million units (constantly referred to as a “hobby”).

Microsoft is competing via the XBox in bringing live programming, movie streaming, and even social media apps to the home theater.  Why hasn’t Apple struck yet?  They have the distribution network, they have the customer base, yet they have sold only 3.4% as many set top units as Microsoft.

They are waiting to get it right.

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