Apple Television Set May Double US Household Spending On Apple Products
Speculations apart, if Apple were to launch actually launch a branded television set, it could cause total average annual US household spending on Apple products to double to $888 by 2015 according to a new projection.
Analyst Katy Huberty with Morgan Stanley explained in a note to investors this week that the spending by Apple’s US household doubled following the launch of the original iPhone, from $150 per year in 2007 to $295 in 2010. Now, she is expecting that the iPad will double the spending again to an average of $635 per household per year by 2013.
“Given a 97% TV household penetration and a 61% broadband household penetration in the US along with an expected high price (and value) point, an Apple TV is likely to generate a similar increase in average household spend, with some help from iPad and iPhone growth.”
Huberty projections call for the average US household with at least $10,000 in disposable income to spend about $888 on Apple products by the year 2015, which would be double the $444 average spent per year in 2011.
Imagining that Apple were to take a 10% share of global spending on televisions, including hardware, subscriptions, and advertising, that would represent $60 billion per year, or an incremental increase of $64 per household per year globally. Furthermore, it is expected that the initial impact of an Apple television set on average household spending would likely be seen mostly in the US. According to Huberty, the real growth potential remains outside of the US.
To reach this goal, she believes Apple needs to forge deals with more carrier partners internationally before release. As of right now, 77% of carriers in Asia, 78% in Eastern Europe, and 88% in Africa have no access to an iPhone. Regardless, it seems like there is so much hype behind the unannounced Apple HDTV television set that people are willing to pay premium without even knowing what features the product will have.