Apple HDTV Seen Doubling The Money Americans Spend On Apple Products

Apple HDTV Seen Doubling The Money Americans Spend On Apple Products

Apple's HDTV could be a huge windfall for the company

There’s no shortage to information out there about Apple’s HDTV plans, but most of it focuses on specs, designs, and user interface (including coverage from our source who has seen one). With the device being a near certainly, other questions are being raised. Will it be an instant hit? How different will the experience be compared to the existing Apple TV set-top box? How much revenue could it net for Apple?

According to calculations by Morgan Stanley analyst Katy Huberty, an Apple HDTV would be a huge windfall for Apple. She sees it as likely to double the money that U.S. households spend annually on Apple products within three years.

In a note to investors, Huberty pointed out that Apple’s iPhone nearly doubled the amount that the average U.S. home spends on Apple products from $150 around the time of the iPhone’s 2007 launch to $295 in 2010. She expects a similar doubling as a result of the iPad. That would mean that the average household would be spending around $635 on Apple products. That seems on target – the average spending for 2011 was $444.

If the Apple HDTV is as a popular as the iPhone and iPad, Huberty expects that by 2015, U.S. households will be spending $888 per year on Apple devices.

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

As we reported earlier this week, half of all iPhone owners surveyed said that they were likely to buy an Apple HDTV within its first year on the market. If Apple can deliver it at or below $1,000, more than a third of American consumers would consider buying one.

Apple won’t need to dominate the U.S. or global HDTV market to make significant profits from its television. Just 10% of global spending on TVs and related items (hardware, subscription services, and advertising) would represent annual revenues of $60 billion.

  • Source AppleInsider
  • FriarNurgle

    No way I’m buying a new HDTV every year.

  • ThatsWhatsUp

    i wouldn’t buy a new tv each year…HOWEVER..if apple somehow offered a tv that could rival my god awful cable company i’d be the first in line to drop the cable company like its hot.  Same goes for if Apple offered cell phone coverage for their iphones (i hate you at&t).

  • RadTech5000

    I think it’s to soon for Apple to consider releasing a TV unless they can compete with the best, anything less wouldn’t seem Apple quality. I’m talking about using the best LED technology available such as a Full Array with Local-Dimming, not just a bunch of cool features on a cheep display. 

    However I’d actually recommend that Apple wait until OLED is cost effective enough to go that route instead, this TV needs to have the best picture out. Sizes should vary from 46”, 55”, 65 and 70”. Eventually they will have to release an 80” or larger but that can wait a few years. As for the prices it’s not going to be cheep, you can’t have both and you get what you pay for. 
  • Daniel Howse

    RadTech5000,

    You know it will only come in one size, Apple doesn’t offer choice it’s their way or the highway.
    And I guarntee you it will be just like all other Apple products, poor quality with a high pricetag that you now need to replace every year since Apple writes the software to turn all their stuff into paper weights when the next version is released.

About the author

Ryan FaasRyan Faas is a technology journalist and consultant living in upstate New York who has written extensively about Apple, business and enterprise IT, and the mobile industry. In addition to writing for Cult of Mac, he is a contributor to Computerworld, InformIT, and Peachpit Press. In a previous existence he was a healthcare IT director as well as a systems and network administrator. Follow Ryan on Twitter and Google +

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