Prospective device price key but new Apple TV likely to be snapped up by iPhone millions

Editor ©RapidTVNews | 17-05-2012

A new Apple connected TV set is the year’s most expected launch and research is suggesting that despite worries over price, Apple’s iPhone community will ensure the device will take off.

Indeed, according to the "Apple's Smart TV: Assessing Purchase Intention and Willingness to Pay" report from the Strategy Analytics Connected Home Devices (CHD) advisory service, nearly half of existing iPhone users would be very or somewhat likely to buy a so-called Apple iTV soon after its launch much to the concern of connected TV rivals, most principally, Samsung, Sony and LG. Furthermore, the analyst thinks that more than a quarter of non-Apple TV owners could potentially migrate to an Apple-branded TV in a fairly short period of time.

However there is huge caveat for such growth: price. Strategy Analytics notes that Apple’s traditional high margins and price premiums would not work in a cost sensitive market. Indeed the analyst predicts that Apple would be challenged to find the right price/demand balance for an iTV and estimates that while 35% of surveyed US consumers indicate willingness to pay $1000 or more for an Apple-branded TV, only 14% would be willing to pay any more than $1600.

"Although the details of a possible Apple smart TV are still unknown, existing Apple customers clearly demonstrate strong interest," commented Jia Wu, Director and report author. "Meanwhile, consumers are still sensitive to price, even if Apple does launch another groundbreaking product. The success of an Apple iTV hinges on Apple’s ability to match innovation with appropriate price points."