This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Apple TV Deal Spotlights Software, Services

Apple has continued to tout the success of its $99 Apple TV set top box, announcing recently it's sold more than 13 million units. By potentially partnering with Time Warner Cable, as well as the recent hiring of Pete Distad from Hulu, Apple is serious about changing the television watching experience.

Apple shares were lower in early Wednesday trading, off 0.32% to $417.15, while Time Warner Cable shares were not active in pre-market.

More consumers are watching television when they want to, as opposed to being subject to a live television programming schedule. By adding HBO GO, WatchESPN, as well as live programming from Time Warner Cable, Apple is placating to this trend.

It's becoming clear that Apple is focusing more on delivering content to users, with Apple TV and iTunes becoming an increasingly important part of the company's business. Apple recently said more than 1 billion TV episodes and 380 million movies have been downloaded from iTunes. Over 800,000 TV episodes and over 350,000 movies are being bought per day. That's serious revenue for Apple, even if it pales in comparison to the money it makes from the iPhone and iPad.

In recent months, Apple's Cook has focused his attention on showcasing Apple as more of a software and services company than simply hardware. Deals such as this continue to stress that focus.

That may play to investor sentiment, which has soured on Apple over the past six months. Shares are down 21.36% year-to-date, trailing the 13.7% gain in the Nasdaq, as earnings and revenue growth have slowed dramatically from 2012.

Apple is set to report third-quarter earnings after the close on July 23. Analysts polled by Thomson Reuters expect Apple to earn $7.33 on $35.16 billion in revenue for its fiscal third quarter.

-- Written by Chris Ciaccia in New York.

>Contact by Email.

-- Written by Chris Ciaccia in New York

>Contact by Email.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $126.37 0.00%
DIS $106.12 0.00%
TWX $85.30 0.00%
TWC $149.27 0.00%
FB $83.20 0.00%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs