Apple has long been referring to its set-top box business as a ‘hobby.’ But that hobby has apparently turned very profitable over the years, garnering a revenue of more than $1 billion in 2013 alone.
The sales numbers for Apple TV in 2013 show a massive growth in the adoption of the device. Analysts estimate that a year-over-year analysis shows a staggering 80% growth in Apple TV. Such extraordinary growth has made Apple TV the fastest growth hardware by Apple, beating the growth of other iconic products such as iPhone and iPad.
Since the set-top box is priced at $99 each, the $1 billion in revenue translates to roughly 10 million units sold. Since 2007, Apple has sold a total of 28 million Apple TV units raking in a revenue of $3.5 billion. And the company is now seeking to build on top of this success.
During an annual shareholder meeting on Friday, Apple’s CEO Tim Cook admitted that the profitable set-top box business was no longer a hobby. He further announced a new promotion which will give a $25 iTunes gift card on every new purchase of an Apple TV. Such deals can further speed up the sales of the set-top box during 2014.
There have been rumors that Apple is readying a new version of its set-top box. The new model is expected to arrive in April this year, although estimates put its availability sometime in June or July. However, to make Apple TV a truly global product with a sales pattern similar to other iOS devices, Apple will have to grow the Apple TV ecosystem further.
Courtesy: Apple Insider