This Day On The Street
Continue to site
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

Apple TV Races to Regain Past Dominance as Roku, Google Take Lead

NEW YORK (TheStreet) -- Apple (AAPL - Get Report) has lost market share in the domestic Internet-connected set-top box business that it once pioneered and dominated, according to research firm Parks Associates, putting the world's largest company behind Roku and its largest rival, Google (GOOG - Get Report). That puts the company in the position of having to struggle to catch up with its own past.

Apple is now in third place, according to the latest data, as the research firm indicated that Apple sold slightly more than 2 million of its $99 set-top box in the U.S. in 2013, compared to an estimated 3.8 million Chromecast streaming dongles (retails for $35) and 3.8 million devices for Roku. The report also notes that Apple lost share in the first quarter of this year, with Roku taking market share in both usage and devices sold. Roku has several choices, ranging in price from $49.99 to $99.99. Plus, the company announced Roku TV at the Consumer Electronics Show in January of this year, a move to get away from set-top boxes and into actual televisions.

The report comes as more Internet-connected devices come into the home. After the first quarter of 2014, more than half of all U.S. households had consumer electronics connected to the Internet (smart TV, connected Blu-Ray player, connect game console, set-top box and or a digital media receiver), as companies make the push into the "Internet of Things," a phrase first coined by Cisco (CSCO) to include devices outside of PCs, smartphones and tablets.

Google I/O Recap: What Wall Street Thinks

Amazon Unveils Fire TV

At Apple's annual shareholder meeting, CEO Timothy D. Cook noted that Apple TV did over $1 billion in revenue for the company in 2013, and is no longer classified as a "hobby," something which former CEO Steven P. Jobs initially referred to the $99 set-top box as.

On Apple's fiscal second-quarter earnings call, Cook noted that the content on Apple TV is getting better all the time, and the company is working on making it better. "We've sold now, [sic]about 20 million of the Apple TV, and so we've got a pretty large installed base there," Cook said on the earnings call. "And I'm feeling quite good about that business and where it can go."

Stepping back and looking at the picture globally, Apple is back on top, having sold more than 20 million devices since the device was introduced in 2007, whereas Roku has sold over 8 million devices in America, according to the company's Web site. Chromecast was introduced in the second half of 2013.

Google also recently introduced Android TV, which will let users watch live TV or stream content from apps such as Netflix (NFLX), Hulu, and others, much like the other set-top boxes allow. True to the company's key mission, Google built a search experience into Android TV. In addition, Google also built a gaming experience into Android TV, similar to what Amazon (AMZN - Get Report) has done with its own set-top box, Fire TV.

Apple has been hard at work adding new content to its set-top box in recent months. In February, Apple added the WWE Network (WWE), as well as an entire channel to The Beatles. In June of 2013, it announced partnerships with HBO GO, WatchESPN, Sky News, Crunchyroll and Qello that offer live news, sports and current TV programming, the company said at the time. In November 2013, Apple added more partnerships including ones with Yahoo! (YHOO) and PBS.

The report comes amid speculation Apple will announce a new device later this year or early next year. In addition to a hardware refresh, a new version of the set-top box could have a dedicated App Store, Siri support and gaming compatibility.

--Written by Chris Ciaccia in New York

>Contact by Email.

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMZN $659.09 0.00%
AAPL $93.24 0.00%
GOOG $701.43 0.00%
FB $117.81 0.00%
TSLA $211.53 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs