Nearly a third of consumers say they'd suddenly be interested in a new TV if it came from Apple
In a survey of 200 consumers in the midwest — which PiperJaffray believes is an accurate representation of the broader US demographic with 95% confidence and a confidence interval of 7 — 49% expressed earnest interest in an 42-inch Apple-branded television in the near term. But only 12% of those people said they'd maintain their interest if the product was priced around $1500.
More significant, however, is that 29% of respondents who said they weren't currently in the market for a new TV in the near term admitted that they'd suddenly be lured back into the market given the advent of a TV manufactured by Apple.
"The level of interest generated by the ecosystem potential shows how powerful the Apple ecosystem has become, as demonstrated by the fact that 67% of all survey respondents interested in the TV owned an iPhone, iPad, or both," said analyst Gene Munster. "The bigger theme that is emerging from this data point is Apple is becoming less a product and more of a platform company that consumers find increasingly more difficult to leave."
Still, Munster believes that pricing could ultimately stand out as the biggest impetus by which consumers weigh their purchasing decisions, especially given a trend over the past 7 years that has seen HDTV prices progressively trend lower.
"While we believe based on anecdotal evidence on iPhone, iPad and Mac sales, many consumers who responded with prices below $1,500 (average in this survey was $530) will be willing to go beyond their stated price range to purchase the product upon seeing it," he explained. "That said, there is a big gap between $530 and $1,500 which makes significant near term market share gains unlikely."
Should Apple manage to attract 10% of the US TV market during the first year, it would add 4% — or more than $9 billion — to the analyst's fiscal 2014 earnings estimates for the company of $231.8 billion.
Of those interested in a rumored Apple TV — which Piper now believes won't materialize until mid- to late-2013, 21% said their interest was driven by Apple's ecosystem, 19% said an easy to use remote and 18% said internet connectivity.
72 Comments
The key of course to the article is "the right price". The thing of course about the TV market is that every other manufacturer has already worked out the scale economies and already has the price as low as they can get. I just don't see Apple as getting any more of an advantage out there considering that it won't be bottom of the barrel pricing. It can't be
As long as it's a nice one, I'll buy it in the future when I can afford it.
Just don't get the parts from Samsung. My dad bought a 46 inch LCD about 18 months ago and it broke within 2 months. Samsung sent out a guy to repair it (under warranty), but it broke again a month later. So he took it back and bought a Samsung LED. It broke not to long again about 2 week out of warranty. Luckily, Samsung was nice enough to repair it anyway.
For 1000 bucks, it sure does break a lot. I think we I go to buy a TV in the future, it won't be Samsung; however, I have heard good things about them from people.
Apple will need a strong selling point to make high profit margins though.
The TV market is only interesting to Apple if a 42" Apple TV can be priced at $999 the minimum. I mean a Samsung 40" Smart TV basic model is being priced at around $650 right now, and the profit margin is really low. So for Apple to maintain let's say a 35% profit margin, they got to charge at least $999.
Really? The trial isn't enough news for PiperJaffray? They have to keep dumping the TV on us, too?
Anyone see a Samsung vs Apple lawsuit over TVs in the future? (assuming apple makes a TV)