from July 2015, Apple TV
Last September, during an Apple special event, Tim Cook finally showed off what engineers at Apple had secretly been working on for years — Apple Watch. It was simply amazing. The watch’s hardware was impressive as was an entirely new OS that took touch and tech to a new level. In the aftermath, many eagerly anticipated saving enough money to be the first on their block to own and wear one. Then the worst product launch in Apple’s recent history occurred.
Unfortunately, all the launch excitement for Apple Watch was sucked out the room when all of Apple's inventory had been purchased online in less than an hour. It would be another six-eight weeks before one could walk out of an Apple retail store with an Apple Watch.
Financial reports and comments on them are one thing, but getting those little morsels of coded information from Tim Cook or Luca Maestri are quite another. Today at 2:00 p.m. Pacific Time, Apple will be holding their Q3 2015 financial conference call with a host of financial analysts and investment researchers. Apple's financial statement, released at roughly 1:10 p.m. Pacific, should be fairly pedestrian. Financial analysts are anticipating 50-55 million iPhones sold, earnings at the higher end of Apple’s revenue guidance of $48 billion, all while keeping a keen eye for any Apple Watch sales information. But beyond the expected is where questions from the likes of Piper Jaffray's Gene Munster or UBS’s Steve Milunovich come forth precious nuggets of Apple’s future.
There are three major areas of commentary I'm looking for during the Q3 call. The first is HomeKit. It was a no-show at Apple’s Worldwide Developers Conference in June. The likely reason for the omission was due to the second area of interest, Apple TV. Both topics go hand-in-hand, as it is highly rumored that the next generation Apple TV will be, amongst other things, Apple’s home automation hub, requiring HomeKit specific tools. Cook will be asked about Apple TV. The question is, will he deliver any hints as to what may be coming, or how current Apple TV sales have been since the $30 price drop earlier in the year (now only $69)?
Apple TV is coming! Apple TV is coming! We've heard the battle cry from analysts to rumor soothsayers en masse for many years, and yet only minor revisions have come to Apple's diminutive hockey puck-like set-top box. This fall looks to be far different for a variety of reasons, but filter out the noise and there are three areas Apple TV will require in order for it to become the must-have living room entertainment device.
Many cord cutter's dream is an a la carte network service. Yet with Disney and Comcast/NBC owning bundles of channels, each making money off multiple cable TV subscription sales, cutting off their $15 a month bundled channel fees, only to sell EPSN for $4.99 a month makes little sense. Apple has run into this bundled juggernaut for years, gaining zero ground. It appears the only way for Apple, or any other cord cutting solution, to win channels is via mini-bundles, similar to that of Dish Network's Sling TV service. If Apple can deliver roughly 20 of the highest rated channels, and sell it for $30 a month or less, Apple would not only gain millions of cord cutting subscribers, but move millions of additional cable/dish customers to their streamlined package.