Apple TV is Not a Hit

Illustration for article titled Apple TV is Not a Hit

The analysts are finally confirming what we've known all along. Apple TV isn't a big deal. Market research firm Forrester reports that they estimate Apple will be lucky to sell 800,000 units by the end of this year, or 200,000 short of Forrester's 1 million unit estimation. So do they blame the marketing? No, plenty of internet-using adults know about the product (around 50%), but only 5% of those people know what it does.

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What's the problem? Forrester actually blames iTunes video for failing the hardware. A software platform that hasn't taken over at the level of music, Forrester thinks that you have to get the consumers watching iTunes movies before Apple can sell the hardware intended to streamline their playback.

I think that the device is just too niche in a consumer's entertainment workflow to swallow. "So wait, I have to buy this just to watch my movie on my TV? Why don't I just watch a DVD then? Or you know, the non-Apple variety of television." If everyone has heard of your product but no one knows what it does, you have to wonder how important its function is to consumers.

But as Jobs himself said, Apple TV is just a "hobby." [pcworld]

DISCUSSION

My iTunes folder is over 600 Gigs of Movies, TV Shows and Music. I still haven't bought an Apple TV since I'm still in the stone age with a standard TV (yes, I know there's an option out there for adapting), but to me, Apple TV is ahead of it's time. A simple, intuitive media extender. If rentals were an option, and much more advertising stating clarity, I think this thing would be selling well. But, I think the real reason that it hasn't sold is that most people are like me.. stone age TVs.