After taking the unprecedented step of forecasting it would sell at least 1 million Apple TV units last week, the Cupertino, Calif. company Monday confirmed it had met its goal. The milestone shatters Apple’s previous high-water mark for the $99 device set it October: 250,000 units. At the time, CEO Steve Jobs remarked he was “thrilled.”
This latest sales announcement seemed more to do with increased competition from the likes of Roku and Google than any real revenue benefit to Apple. Last week analysts described the $400 million in revenue from sales of 1 million Apple TV as “fairly immaterial.” Kaufman Bros. analyst Shaw Wu, however, said the Apple TV could become “a more material contributor and game changer in the TV space,” if Apple creates an App Store for the device, similar to how the Cupertino, Calif. firm has done for other products, such as the iPhone and iPad.
In other news, Logitech, maker of the Google TV-based Revue set-top box, Monday denied an earlier report that it had halted production of the Internet TV product to permit the Mountain View, Calif.-based company to update software. “Logitech has not been asked by Google to suspend production of its Google TV products,” Nancy Morrison, Logitech vice president of corporate communications, told Barron’s by e-mail.
However, Morrison’s statement was parsed and carefully-worded to only deny production of Revue was at the behest of Google. Wall Street Journal technology columnist Walt Mossberg had deemed Google TV the second-worst reviewed product of 2010, calling the system “too complicated.”