Apple iTV directed at high-end consumers, analyst

Karen Haslam
5 April, 2012
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Apple might be able to announce its own smart TV, but it’s unlikely to have any impact because Apple will make it for high-end consumers, according to a research firm.

ITG Industry Investment Research analyst Joseph Fersedi based his negative outlook on the idea that Apple may goes after the high-end or premium, segment of the TV market, which is a small market. “While it makes sense to think that Apple will go high-end in the TV business (as it has in computers, phones and tablets), our analysis suggests that Apple may need to go more mass market within a couple of years of launching a premium-priced TV product,” Fersedi wrote, according to

ITG asked consumers in the US whether they were interested in buying an Apple iTV. A third (34 per cent) of respondents with a household income greater than $50,000 a year that said they were likely to buy a TV set in the next 12 months said they’d buy an iTV based on Apple’s brand alone. However, amongst lower-income families, 44 per cent said they would buy an iTV – but they may not be able to afford one, suggested Fersedi.

ITG also looks at the potential for Apple to make money from pay-TV services and movie rentals or purchases. ITG says pay-TV subscriptions generate $216 billion a year worldwide, while home video revenue totals $53 billion a year. However, Fersedi explained, this market is much harder to penetrate.

ITG expects that the rumoured iTV could increase Apple’s market cap by a mere 10 percent or US$60 billion.

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