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Exactly How The Apple Inc. (AAPL) TV Will Transform The Industry

Imagine if all those high-dollar cable television “packages” started to be a remote memory and consumers solely purchased the channels they desired? To borrow one more traditionally used saying, the opportunities are countless and Apple is aware of it.

There are roadblocks

It truly is an utopian-sounding scenario. Everything all of us detest in relation to television are resolved thanks to Apple. It might materialize, although the TV business continues to be hesitant to change. Content vendors are definitely not interested in modifying how they conduct business. Looking at just how Apple transformed the music industry, all those earning money off television don’t want Apple swooping in and eating their profits. To express that it is a formality that Apple’s up coming major innovation may be the iTV is faraway from certain. Similar to goings-on in Washington, as soon as money and power turn out to be part of the formula, a terrific concept is frequently removed down to fine or merely OK.

The bottom line

Would you purchase an iTV? A newly released study discovered that customers could well be ready to pay about 20% more for a television that features the Apple company logo on it. The same study also discovered that:

  • 11% of participants reported they would be “very interested” in purchasing an Apple-branded Television set, which in turn results in 13 million packages in the U.S. only.
  • 36% stated they would be “relatively interested,” which might result in an additional 43 million units.
  • 46% of participants were ready to pay more than $1,000 to have an iTV and also 10% were prepared to pay above $2,000.

Conclusion: iTV offers a $13 billion opportunity that might increase $4.50 to Apple’s EPS.

That is definitely great news for Apple. No matter whether iTV will be a full-fledged TV, an alternative for your present set-top box, or simply nothing at all, remains to be seen. The general public is expecting Apple to become an industry disrupter once more. A very important factor is certain: Apple possesses a wad of money bigger than a few small countries. If anyone can get it done, it definitely is Apple!

The article Exactly How The Apple TV Will Transform The Industry originally appeared on Fool.com and is written by Marcus Vilkas.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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