Apple has just announced this morning that its 160 GB Apple TV device is now $100 less at $229. This price reduction is likely to attract more customers and increase the device’s market penetration. This move only fuels rumours that Apple is now aiming its sights on high-resolution devices using its all-new iTunes Extras/LP format. However, this format is limited at the moment as it doesn’t yet play on an iPhone or an iPod touch.
Apple’s Strategic Price Reduction
The decision to lower the price of the 160 GB Apple TV by $100 is a strategic move by Apple to make the device more accessible to a broader audience. By reducing the price, Apple is not only making the device more competitive in the market but also potentially increasing its user base. This could lead to higher sales of content through the iTunes Store, as more users will have access to the platform.
Moreover, the price cut comes at a time when high-definition content is becoming increasingly popular. Consumers are looking for devices that can deliver high-quality video and audio, and the Apple TV fits this demand perfectly. The device supports 1080p HD video, which is ideal for watching movies and TV shows in high resolution.
Future Prospects and Innovations
Piper Jaffray’s Gene Munster recently predicted sales of 6.6 million Apple TVs by the end of this year. This optimistic forecast is based on the growing trend of digital content consumption and the increasing popularity of streaming services.
He said: “We expect Apple to design a connected television over the next two years (launching in 2011) with DVR functionality built in. These recorded shows could then sync with Macs, iPhones, and iPods over a wireless network. The device would push Apple further into the digital living room with interactive TV, music, movie, and gaming features. With its iTunes ecosystem, Apple could develop a unique TV without any set-top boxes or devices attached.”
Munster’s prediction highlights the potential for Apple to revolutionize the home entertainment industry. A connected television with DVR functionality would allow users to record their favorite shows and watch them at their convenience. The ability to sync recorded content with other Apple devices over a wireless network would provide a seamless and integrated user experience.
Additionally, the integration of interactive TV, music, movie, and gaming features would make the device a central hub for home entertainment. Apple’s iTunes ecosystem already offers a vast library of content, and a connected television would make it even easier for users to access and enjoy this content.
Challenges and Opportunities
While the future looks promising for Apple TV, there are still some challenges that need to be addressed. One of the main limitations of the iTunes Extras/LP format is that it doesn’t yet play on an iPhone or an iPod touch. This restricts the usability of the format and limits the potential audience.
However, Apple is known for its innovation and ability to overcome challenges. It is likely that the company is already working on making the iTunes Extras/LP format compatible with more devices. This would not only enhance the user experience but also increase the adoption of the format.
Furthermore, the competition in the home entertainment market is fierce. Companies like Amazon, Google, and Roku are also offering streaming devices with similar features. To stay ahead of the competition, Apple will need to continue innovating and offering unique features that set its devices apart.
The price reduction of the 160 GB Apple TV is a strategic move by Apple to increase its market share and attract more customers. With the potential for future innovations and the growing trend of digital content consumption, the future looks bright for Apple TV. However, the company will need to address the current limitations of the iTunes Extras/LP format and continue innovating to stay ahead of the competition.
Via 9to5Mac
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