Providing market intelligence for more than 35 years

In The News

Why I'm Glad Apple Inc. Killed Its Smart TV Plans

There's simply no reason for Apple to jump into the crowded low-margin battlefield of smart TVs when it can sell its hardware at gross margins exceeding 40%. Steve Jobs reportedly once told employees, "TV is a terrible business. They don't turn over and the margins suck."

Perhaps Icahn will argue that Apple's brand appeal could convince people to buy $1,500 4K TVs. But in my opinion, TVs don't belong in the same category as smartphones or tablets. Plunging prices across the market indicate that customers favor big screens with low price tags, and the upgrade cycle for TVs is much longer than the one for smartphones and tablets.

In addition, Apple already has a decent foothold in the connected TV market with Apple TV, which accounted for 17% of all streaming media devices in the U.S. last year, according to Parks Associates. That makes it a decent platform for delivering iTunes, its upcoming streaming TV service, and other digital content to customers.

From the article "Why I'm Glad Apple Inc. Killed Its Smart TV Plans" by Leo Sun.

Previously In The News

Functionality, Brand Fuel Smartwatch Choices

Smartwatch users want their devices to work well, particularly with their similarly branded smartphones, but they are beginning to consider their fashion bona fides as well. According to new re...

Over The Top Services Outpace Pay TV

According to a recent Parks Associates survey, reported by Joseph Palenchar, a total of 57% of U.S. broadband households subscribe to an over-the-top (OTT) video service (streaming of video content...

Video Users Want Multi-Device Options

New digital/over-the-top video consumers want a wide number of choices to consider when it comes to how many devices they can use. But is that enough for OTT platforms to succeed? Parks Associate...

For Some Of Us, Pay Services Are A Steal

Parks Associates has produced a new report that says 6% of all broadband-capable households make use of a streaming video service paid for by someone who doesn’t live there, and 20% of streaming vi...