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Wednesday, 12 December 2012 11:37

Consumers interested in Apple smart TV

Written by Peter Scott

Willing to pay hefty premium

Apple and Google will soon expand their handbag fight to the TV market. Although both outfits were expected to introduce smart TV products this year, they didn’t materialize.

Analysts are now weighing in on Apple’s smart TV and they seem rather impressed by the potential of the smart TV market. Morgan Stanley analyst Katy Huberty believes Apple could sell more than 13 million “iTV” units, once it gets round to launching them, of course.

A recent survey found that 18 percent of US households owned a smart TV, but only 13 percent knew how to connect it to the internet. So while TVs are getting smarter, consumers are not. The survey also showed that 11 percent of consumers are “extremely interested” in buying a fruity smart TV, while 36 percent said they are “somewhat interested.” Basically the survey indicates that consumers are more interested in Apple’s vaporware TV set than new iPads and iPhones.

Almost half of consumers said they would be willing to pay over $1,000 for the new device, but 10% of consumers said they wouldn’t mind paying $2,000. Younger consumers, in the 18 to 29 age bracket, said they would pay a 32 percent premium to get an Apple TV. Well, what they probably meant to say is that their mum and dad would be willing to pay such a premium to buy them a new TV. Older and more sensible consumers are less keen to dish out more money, but they would still accept a 15 to 22 percent premium.

13 million TVs at $1,000 a pop translates into a $13 billion opportunity for Apple, but the “iTV” business would still be much smaller than the Mac business, let alone Apple’s phone and tablet business.

More here.

Peter Scott

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