Apple needs to cut the prices of Apple TV or send it the way of other retired products like iPod HiFi and the high-end version of its HomePod speakers, wrote Mark Gurman in the latest edition of his newsletter.
What Happened: Gurman noted the coming of the “age of streaming” and the abundance of services like those offered by Netflix, Amazon.com, and Hulu.
This, according to Gurman, has made Apple TV a largely “pointless accessory.” The analyst buttressed his point by sharing 2020 data from Strategy Analytics that found that Apple TV only held 2% of the streaming device market.
“One idea for keeping the Apple TV relevant would be to bundle an Apple TV+ subscription indefinitely at no additional charge,” wrote Gurman.
Gurman’s other ideas include cutting the price of the box or turning it into a 4K capable “stick.”
Why It Matters: Gurman’s suggestions are unlikely to come to fruition anytime soon. He said that Apple engineers have told him that the iPhone maker “doesn’t have a strong living room hardware strategy and that there isn’t much internal optimism.”
In the latest newsletter, Gurman noted that the Apple TV had gone through more “interface overhauls” compared with any other Apple products and “despite nearly 15 years of attempts, Apple hasn’t created anything close to a market leader.”
The Bloomberg Journalist contributed to 9 to 5 Mac for over six years and isregardedas an authority on the Tim Cook-led company.
Appleunveiled the next generationof its 4K box containing an A12 Bionic chip in April this year. The device comes with a new Siri Remote,which features clickpad and touch controls.
Price Action: On Friday, Apple shares closed nearly 0.5% lower at $146.14 in the regular session and fell 0.12% in the after-hours trading.
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