Apple unveiled its latest iteration of Apple TV this week to much fanfare, however this current version of Apple TV may face a far more challenging market than its predecessors. Previous versions had difficulties gaining significant traction with the public, and according to Paul Erickson, Senior Analyst at IMS Research
, the new and improved Apple TV may encounter a similar fate.
Apple has struggled with Apple TV’s appeal to consumers. The newest version debuted with a sub-$100 price, a smaller form factor, a move to streaming-only, and the addition of YouTube, Netflix, and Flickr access to what was primarily an iTunes-based device. According to Erickson, this might not be enough: “Today’s competitors are the devices that are already in, or going into consumer households – Blu-ray Disc players, game consoles, and connected TVs. These devices already integrate similar access to paid and free content. Of these, the most dangerous competitors are game consoles and BD players – both of which arguably trump Apple TV in terms of must-buy priority for consumers.” Erickson also cites the following potential disruptors to the Apple TV strategy.