Apple's iTV Intriguing but Not a Core Business
But expectations that computers and entertainment centers would converge in some fashion date back nearly 30 years. Though the technology certainly is closer to making the digital living room a reality today, the market still hasn't really taken off.
More specifically, iTV's success could be important for Apple. The company's growth in recent years has been driven largely by its lineup of iPod digital music players. But with the digital music market maturing out of the hypergrowth phase, investors have been on the lookout for the company's next growth area.
iTV -- and Apple's new movie download service that will link to it -- is one of the first moves by the company to broaden beyond the digital music and computer markets into a new market.
There are good reasons to believe that couch spuds could welcome Apple into their living rooms. Not least among them is Apple's success in digital music and related markets: The company simply dominates the digital music market, holding more than a 75% share of U.S. sales of portable digital players and nearly 90% of sales of digital music downloads.Moreover, Apple has done far better at selling TV shows than many investors imagined when the company added them to its iTunes Music Store last year. At last count, Apple had sold roughly 45 million shows and now has the support of all the major networks.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV