December 17, 2012
Morgan Stanley’s Katy Huberty issued findings this week regarding the much anticipated and perhaps never-to-be-realized “iTV.” Huberty surveyed 1,568 heads of households in the U.S., asking about smart TV habits. According to her results, 18 percent of those surveyed own smart TVs and 11 percent said they would be “extremely interested” in buying an Apple-branded TV. That percentage translates to 13 million units in the U.S. alone.
Those who already own Apple products were four times more interested in buying an iTV than those without. Perhaps most notable: “46 percent of respondents were willing to pay over $1,000 for an iTV and 10 percent were willing to pay over $2,000. On average, respondents were willing to pony up $1,060, a 20 percent premium over the the average $884 they paid for their current TV set.”
“Bottom line: iTV represents a $13 billion opportunity that could add $4.50 to Apple’s EPS,” suggests Fortune.
Huberty notes three potential “go-to market” strategies: 1) Apple becoming a virtual cable service provider; 2) Apple partnering with pay TV carriers and replacing their set-top box; or 3) Apple bundling its TV with its own digital media receiver.
“Because Apple’s biggest media-device successes (iPod, iPhone, iPad) have been end-to-end solutions — including hardware, operating system and the packaging and distribution of content — Huberty favors the third option,” notes the article.