Apple: ecosystem upgrade
14 September 2010
Apple has upgraded its iPod family and also iTunes, which now includes new social networking features, and revamped Apple TV, now reinvented as a streaming-only device at a fraction of its former price
We expect iPod sales volumes to continue to slide despite the update, but estimate that improved ARPU will add $600 million to Apple’s topline in FY2011. However, iPhones and Macs are the company’s key revenue drivers
The revisions to Apple TV should drive up sales, but the content offering remains weak (especially outside the US) and it is joining an already crowded playing field – its main benefit is likely to be supporting the Apple ecosystem