08.12
It’s that time of year again. We’re getting close to the annual iPod updates and with that there continue to be rumors flying about an Apple TV update. Let’s review the relatively old rumors:
- The price point will be $99.
- It will run iOS.
- It will have the A4 CPU.
- It will have limited local storage (16GB) and offer streaming via iTunes.
The latest round of rumors peg the video at 720P instead of 1080P or 1080i. Not surprising honestly. That a _LOT_ less data to push.
Also, the name will be changed to iTV.
I’ve already been thinking since last summer it is a no brainer to move the Apple TV iTV to iOS. As a set-top device it is made for it. I wouldn’t even have to be that “good” out of the gate to get massive adoption. Same App Store model but throw on Netflix and Hulu and some games and you’re done. Apple would sell a truckload.
I’ll throw in my own prediction for what we might see from Apple if they do launch the iTV:
In addition to the $99 option with a simple remote, I expect to see a $299 option with an iPod touch. That’s basically no saving over buying an iPod touch separately but I bet it would still sell like hotcakes. Think about it: iTV running iOS with App Store support and an iPod touch thrown in for just $299? Sounds like a bargain to me. I think Apple would see sales split about 50/50 between the $99 and $299 price point. The other beautiful little bit of the $299 package is Apple would insert not just 1 but 2 iOS devices into a household with each sale. Wrap your head around that.
4 Responses.
Nice. I’ve been holding off on an Apple TV but I might have to get one if it’ll sync to my iTunes library.
I have to disagree on the iPod Touch bundling, though — it smells like a gimmick, and Steve doesn’t do gimmicks. The only time I’ve seen them bundle stuff together is for the educational market, when they’re trying to clear out inventory that’s end-of-life.
(How many people would buy an Apple TV but not have an iPhone or iPod Touch? Or, to put it another way — is Apple TV adoption part of the iPhone “halo effect”, or vice-versa?)
RE: gimmick. I can see your point. But it doesn’t feel gimmicky to me. Ah, I just checked the latest price of the cheapest iPod touch and it’s only $199. I thought they were still $229. So figure about $249 or $279 for the bundle. Anyway, it’s not a slam dunk they will offer it as a bundle (in addition to the standalone). I just think they’d be smart to.
As to your other question, I look at the adoption the Xbox 360 had when Netflix streaming was introduced. I can’t find the numbers right now, but several million Xbox 360s were sold just so folks could get a set top box with Netflix streaming. I think the same thing will happen with the iTV assuming it comes with App Store support and Netflix, Hulu, and say ABC apps. So I could see a large customer base buy the iTV as their first Apple product.
I forgot one other point. The bundle indirectly gets Apple a gaming system in every home (one could argue 2 gaming systems). Did you see id’s Rage demo for iOS? Damn.
[...] per usual. Of course, Apple typically employs a fall event for its annual refresh for iPods. As previous noted, it is also expected rumored Apple will update the Apple TV to run iOS and rename it iTV. Given the [...]