'15-Year Long-Lasting Product' Apple Set-Top Box... Crisis Theory Amid Innovation Absence
Bloomberg News Mark Geoman Report
[Asia Economy Reporter Cha Min-young] Apple’s set-top box 'Apple TV,' boasting about 15 years of product history since its first release in 2007, has faced criticism for reaching its limits amid the market shift toward online streaming.
On the 9th, Mark Gurman of Bloomberg News, in his 'Power On' newsletter, evaluated, "In April this year, Apple introduced a new Apple TV with a faster processor and remote control features, but the $199 price is not justified."
Apple TV, created by Apple, is a type of set-top box that receives data from various sources and delivers it to the television. It has provided functions such as iTunes movie and TV show rentals, Apple TV-exclusive apps, the online video service (OTT) 'Apple TV Plus,' Apple Music service, and AirPlay.
Mark Gurman explained, "In recent years, Apple TV has become a product that Apple fans and content enthusiasts hesitate to purchase," adding, "With the supply of online streaming services, the business model has changed so that all services can be offered on all devices including phones, tablets, TVs, streaming sticks, and game consoles."
According to Strategy Analytics, as of 2020, Apple TV’s market share in the streaming device market was only 2%. The excessively high pricing of Apple TV, about twice that of competitors, is also considered to have had an impact.
Mark Gurman mentioned bundling with OTT services as a solution for Apple TV to overcome its crisis. He suggested, "For Apple TV to stay connected with customers, Apple TV Plus subscriptions should be bundled indefinitely."
He also added, "For Apple to really be effective, they should lower the price of Apple TV or create a cheaper stick version in 4K," but noted, "However, this seems difficult as Apple developers currently believe the company does not have a strong hardware strategy."
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Meanwhile, Apple plans to introduce a new version of the Apple TV product in 2023 that combines Apple TV, HomePod, and FaceTime camera home hub devices.
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