Menu
Analyst: Functionality will sell Apple TV

Analyst: Functionality will sell Apple TV

The release of the Apple TV has driven Think Equity analyst Jonathan Hoopes to repeat his "Buy" rating on Apple, citing a US$120 price target on the stock.

The analyst believes the combined punch offered by the device in combination with Apple's industry-leading iTunes Store could transform the video industry in the same way as the iPod and iTunes changed the music business.

Hoopes writes: "We think the Apple TV/iTunes combination could become as disruptive to legacy video purchase-and-consumption behavior as the iPod/iTunes combination has been to the traditional music business model."

The Apple TV will offer much more than just a computer in the living room, he told clients.

"Apple TV functionality will likely be much more than that of a PC in your living room," Hoopes notes, adding, "We remind investors that software holds the key to further share gains and margin expansion."

He predicts that the device will achieve widespread adoption and enable Apple to explore film download, TV recording and games development through the device.

The device is, "an ideal conduit for multiple services including DVR, paid-for content (such as video-on-demand), gaming, or advertising," he says.

He anticipates the product and associated services from Apple will yield at least $10 per share in gains for the company.

"Our conservative adoption model points to AppleTV penetration of 25-70 percent among Mac users (versus the 150 percent achieved by the iPod) not to mention many, many more PC users," he says.

The analyst also notes that subscription-based services — such as online games or film rentals — could be made possible through Apple's front room media center.


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags AppleiPhoneiTunesipodApple TV

Featured

Slideshows

Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
Show Comments