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The Motley Fool

Apple TV Is Finally Getting a Makeover

March 22, 2015

According to an article published on Apple Insider, citing data from research firm Parks Associates, Apple saw its share in the streaming media device market drop from 26% to just 17% in 2014. Although the report cites lower-cost "stick" alternatives from Roku, Amazon, and Google as reasons why Apple has lost share, I suspect that selling a much less functional device at a $99 price point was also a problem.

The price drop on the current models from $99 to $69 should help on the share side, but revenue and profits per unit obviously take a hit. By introducing a much more capable device with more features, faster processing, and potentially a more compact design, Apple should be able to charge higher prices and command better margins per unit.

From the article "Apple TV Is Finally Getting a Makeover" by Ashraf Eassa.

Previously In The News

This Little $35 Device Could Change the Smart TV Market

According to a survey from Parks Associates, 37% of homes with streaming media devices in the U.S. currently use Roku, compared to 24% using Apple TV. Since 2011, the number of households using an...

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