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Apple TV Business Generated $1 Billion in 2013, Cook Says 'Difficult to Call It a Hobby'
During Apple's annual stockholders meeting in Cupertino today, Apple CEO Tim Cook revealed that Apple sold more than $1 billion worth of its Apple TV set-top box in 2013, putting sales at close to 10 million units for the year.
This is a roughly double the 5 million it sold in fiscal 2012, which was double its Apple TV sales in 2011. Cook has traditionally called the Apple TV a "hobby", but said today that "it's a little more difficult to call it a hobby these days". Horace Dediu created a chart showing the impressive growth of Apple TV sales over the past several years, making it the fastest growing device in Apple's hardware lineup.
It has been repeatedly rumored that Apple is working on an improved set-top box and also a full-fledged television set. A new set-top box is expected to be introduced in the next couple of months, though it's unclear when the device itself would go on sale. A recent report said Apple would be introducing an SDK for Apple TV application development with an accompanying App Store launching to the public later in 2014.
Apple also launched a sale on the Apple TV at the company's online and retail outlets in the U.S., giving out a $25 iTunes Gift Card with purchase of the $99 device -- an unusual move for the company which only rarely offers sales on its devices.
Update 11:21AM: Re/code's Peter Kafka says the $1 billion number includes content sales on the Apple TV box, including movie rentals and TV show purchases.
This is a roughly double the 5 million it sold in fiscal 2012, which was double its Apple TV sales in 2011. Cook has traditionally called the Apple TV a "hobby", but said today that "it's a little more difficult to call it a hobby these days". Horace Dediu created a chart showing the impressive growth of Apple TV sales over the past several years, making it the fastest growing device in Apple's hardware lineup.
It has been repeatedly rumored that Apple is working on an improved set-top box and also a full-fledged television set. A new set-top box is expected to be introduced in the next couple of months, though it's unclear when the device itself would go on sale. A recent report said Apple would be introducing an SDK for Apple TV application development with an accompanying App Store launching to the public later in 2014.
Apple also launched a sale on the Apple TV at the company's online and retail outlets in the U.S., giving out a $25 iTunes Gift Card with purchase of the $99 device -- an unusual move for the company which only rarely offers sales on its devices.
Update 11:21AM: Re/code's Peter Kafka says the $1 billion number includes content sales on the Apple TV box, including movie rentals and TV show purchases.
Buyer's Guide: Apple TV (Don't Buy)
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66 months ago
Something is coming soon
Would the CEO talk on the Apple TV and talk it up (a $1 billion business on it own) if it wasn't leading somewhere soon?
Most of us will be disappointed in whatever Apple releases as the next version because many Macrumours fans believe it to be a magic box full of potential. However, Apples hands are tied due to content restrictions and cable companies.
I'd like to see the Apple TV have a 32GB SSD and a router combined - I'd like it to be able to run iOS games and a UI overhaul. At WWDC I'd like the company to open up the Apple TV to developers. I can't think it there would be huge amounts of apps worth downloading like on the iPhone and iPad but I do think some developers could make some extraordinary apps.
The WWE channel is very much a sign of things to come in the future.
Clearly "content is king" remains the mantra for all of broadcasting.
Would the CEO talk on the Apple TV and talk it up (a $1 billion business on it own) if it wasn't leading somewhere soon?
Most of us will be disappointed in whatever Apple releases as the next version because many Macrumours fans believe it to be a magic box full of potential. However, Apples hands are tied due to content restrictions and cable companies.
I'd like to see the Apple TV have a 32GB SSD and a router combined - I'd like it to be able to run iOS games and a UI overhaul. At WWDC I'd like the company to open up the Apple TV to developers. I can't think it there would be huge amounts of apps worth downloading like on the iPhone and iPad but I do think some developers could make some extraordinary apps.
The WWE channel is very much a sign of things to come in the future.
Clearly "content is king" remains the mantra for all of broadcasting.
66 months ago
Omg
Enough already!!! Just release it!! I'm tired of getting c*ck-teased with these headlines, only to find it being another speculation or quote from an analyst!
I know...first world problems. :rolleyes:
Enough already!!! Just release it!! I'm tired of getting c*ck-teased with these headlines, only to find it being another speculation or quote from an analyst!
I know...first world problems. :rolleyes:
66 months ago
I use my AppleTV almost as much as my iMac! Love it! Can't wait to see what is coming!
66 months ago
I am pretty much just dying for a real Apple TV at this point. I need somebody to slay Time Comcast.
66 months ago
Sounds like BS. As I understand, the problem is with passing data from Level 3 to Comcast. It's not like AppleTV boxes are connected directly to Level 3 network.
You must sooooo hate it when someone says something positive about Apple.
66 months ago
I'd like to see it be a little more "open" before purchasing.
official support for Plex. More wide open acceptance of formats.
Tying me into iTunes for my content doesn't fly for me. I ended up going Roku, though I'm not overly impressed by it, it at least has support for standard DLNA and Plex on top of it's own channels.
But If i could have an AppleTV, I would preffer it, Especially for Airplay.
I for one, do not want to seee Apple make a TV set.
Tv's generally are not something people buy every year. An Apple TV would likely be a silly product with relatively low sales. Especially when people are paying thousands for TV's.
However, A $99 addon box to make Any TV an apple TV is great. you can upgrade it without replacing your TV.
official support for Plex. More wide open acceptance of formats.
Tying me into iTunes for my content doesn't fly for me. I ended up going Roku, though I'm not overly impressed by it, it at least has support for standard DLNA and Plex on top of it's own channels.
But If i could have an AppleTV, I would preffer it, Especially for Airplay.
I for one, do not want to seee Apple make a TV set.
Tv's generally are not something people buy every year. An Apple TV would likely be a silly product with relatively low sales. Especially when people are paying thousands for TV's.
However, A $99 addon box to make Any TV an apple TV is great. you can upgrade it without replacing your TV.
66 months ago
Looking forward to a new set-top-box, but PLEASE do not get into televisions Apple. There's no point.
66 months ago
Now how about we stop calling the Mac mini a hobby and release updates with the Haswell processors.
66 months ago
Do you honestly think anyone on Wall Street is going to be impressed with that $1 billion business? C'mon. That would move Apple's overall needle about .01%. As soon as they announced that lackluster figure, Apple share price immediately went limp. I doubt even a $10 billion business would move Apple's share price up appreciably. We not talking about an unlimited growth potential company like Google. Every venture that Apple will ever do in the future has already been priced into the stock. I'm not going to buy an AppleTV until it has approved PLEX support although I might consider it if it plays off-the-shelf iOS games. So far, everything Apple does is only succeeding in driving the share price down further. And things never go well for Apple stock when Tim Cook starts with his "Apple will soon yada yada..." speech. :mad:
Why on earth do people say such moronic things?
$1 Billion is 0.01% of 10 TRILLION dollars. With annual revenues at around 150 Billion, you are off by almost two orders of magnitude.
and when you say $10 Billion would also be tiny, that's not so much less than iPad revenues in 2012. Are you saying the iPad hasn't contributed to the share price?
Stocks are down today: this news has nothing to do with the share price today.
Oh yeah and the Easter Bunny isn't real.
Anything else I can help you get a clue about?
[ Read All Comments ]
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