Although experiencing setbacks, Apple still believes that TV business needs to boost sales through innovation, and that Apple has started to build television guide services. At present, Apple TV's sales lag behind major competitors such as Roku, Google and Amazon. Apple did not specify TV sales in its latest financial report, but Apple CEO Tim Cook said last year that Apple TV shipments exceeded 20 million units. However, compared to the iPhone's billions of sales, it is insignificant.
In order to integrate more Apple TV services and corresponding consumers into their own ecosystems, Apple is generally strengthening its product service R&D efforts in order to generate more revenue through services. In fact, Cook recently stated that Apple App developers have received more than $50 billion in revenue from the Apple App Store.
The current Apple TV can be said to be a digital media player, users can play video content provided by the iTunes Store, Netflix and other content providers. Consumers need to spend 199 US dollars to buy Apple TV, in addition to the need to pay for the use of Netflix and HBO GO subscription services.
There is no doubt that Apple's upcoming TV guide will make it easier for users to find what they want. But whether it is enough to allow consumers to replace their existing digital TV set-top boxes with Apple TV is still unknown.
John Conlon, chief securities analyst at People's United Wealth Management, believes that Apple's TV Guide may pave the way for future TV bundles. Conlon pointed out, "If you can attract enough users to use this service, then content providers are not a problem. All service providers can share users through the TV bundle service." Conlon cited the iTunes store example, the reason why Apple Can attract a large number of artists because of the massive amount of users they had before.
However, Laura Martin, a senior analyst at Needham Co, a securities company, believes that Apple TV Guide service development is difficult. She pointed out, "Users will not generate additional demand for the product, unless Apple can reach a cooperation agreement with some of the larger content providers." For consumers who are already subscribers of Comcast or Time Warner Cable, if they are New services cannot provide them with more content access, so television guides are less attractive.
Martin believes that the sensible move to expand Apple TV sales is TV bundled service. She said, "TV bundled service is relatively easy for Apple, the company needs only to pay related fees. Because they are Apple, so they want others to offer. But think that they can not complete the idea of ​​trading is very ridiculous."
In fact, according to previous reports in the Wall Street Journal, many service providers are very interested in Apple's TV bundle service, but Apple is too stubborn. For instance, Apple had a deal with Disney, but the latter refused to make concessions on the offer.
According to reports, Apple's senior vice president also admitted that Apple's quotation lacks space, and the open TV user interface issue has also affected the cooperation.
Martin pointed out that "the biggest problem at the moment is Apple's lack of flexibility. They should realize that they need a new pricing model."
Apple's stubbornness may come from the company's self-confidence. It believes that it is not possible to rely on existing radio and television network services to obtain enough users. As part of its TV business development strategy, Apple is also developing new video content.
Apple is currently developing a reality show about application development and will launch Apple Music later this year. In addition, Apple also purchased the Carpool Karaoke program, which is a unit of The Late Late Show hosted by the famous comedian James Corden.
Although these programs may be welcomed by users, they are not enough to convince consumers to purchase Apple TV. However, it is always beneficial to the user's agglomeration effect. The development of such programs will also help to increase the influence of the Apple brand and bring propaganda effects to other products under its control.
And Apple's TV guide service can become a wise move to be further observed. Martin pointed out that “it seems that developing a user interface with a TV guide is a good idea and is consistent with Apple’s hardware and software R&D strategy. But it is too early to judge whether it will succeed.â€
In fact, TV guides or attracting more users to use Apple TV may not attract consumers' attention. Then the company would have to go back to negotiations with content providers and continue to develop its TV bundled service. In any case, even if Apple's TV sales have risen, it will not be able to achieve the impact of Apple's iPhone.
"In the television business, they are not pioneers. They don't have a market," Martin pointed out. "But you never assert this to Apple."
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