Consumers are extremely keen to lay their hands on a television set from Apple (NASDAQ:AAPL) and are willing to pay a 20 percent premium over existing products for the device, according to a new survey. Of the 1,568 U.S. households polled by AlphaWise and Morgan Stanley, just 18 percent reported owning a smart TV, while 13 percent said they didn’t know whether their TV was smart. About 11 percent of the survey respondents said they would be “extremely interested” in buying a TV from Apple, while 36 percent said they were “somewhat interested,” Apple Insider said.
What Do the Results of the Survey Imply?
The total 47 percent interest in the device led Morgan Stanley analyst Katy Huberty to be very optimistic about the potential product. The 11 percent can be translated to over 13 million potential units sold in the U.S., while the additional 36 percent would be an incremental 43 million units.
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Smart TV usages were also dismal. According to the poll, those who own smart TVs connected to the Internet actually spend very little time accessing content on the web through it. “This suggests that Smart TVs currently available on the market do not offer easy-to-use software to integrate Internet content into users’ TV experience,” Huberty said. That was a clear indication that Apple had a strong opportunity to disrupt the TV market, the analyst added.
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Most of those who were surveyed were interested in features including high screen quality and easy-to-use software.
Respondents were also willing to pay a premium for the product, with 46 percent happy to pay more than $1,000 for an Apple-branded TV and 10 percent willing to pay more than $2,000. On average, respondents said they would pay $1,060, a clear 20 percent premium over the $884 paid for the current average television set. The device represents a $13 billion opportunity that could add $4.50 to Apple’s earnings per share, the analyst said.
How Could This Affect Apply?
Rumors about a potential Apple television set have been around for years and the chatter picked up once again after chief executive Tim Cook said in an interview that it was an area of interest for the company. A sign of high interest from potential consumers will be encouraging for investors, who’re keen to identify growth areas for the company at a time when the stock has been struggling on worries about its future.