GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Why Apple Will Never Be King of the Living Room

March 28, 2012 | About:
matsandalex

matsandalex

10 followers
Many investors expect that Apple (AAPL) will be the dominant force in television. Conquering the living room is often thought of as the last frontier for Apple. However, when one looks at the numbers, the dominant player in the living room might actually be Microsoft (MSFT).

For example, Microsoft X-Box is largely used as an entertainment console. It is not strictly a video game console.

"Yusuf Mehdi, who heads up marketing and strategy for Microsoft's Xbox business, said households now spend an average of 84 hours a month on the Xbox Live online service playing games, watching videos and listening to music. That's up 30% from a year ago. Just over half that time is spent on videos and music."

In other words, a large part of what Apple TV aspires to do is what Microsoft is actually doing right now.

The content roster on the X-Box is impressive as well which is why the user time is increasing at such a fast clip.

The X-Box gives you access to Netflix, ESPN, Hulu, Vudu and YouTube. In the near future, X-Box Live will also offer video applications from HBO Go, Major League Baseball and Comcast Corp.'s Xfinity on-demand video service.

Wall Street continually promotes Apple TV as a key pillar of growth for Apple and a large part of the justification for the $575 billion market cap. However, Apple TV has been a bust thus far. Apple and Google are only expected to ship 12 million entertainment consoles this year. However, this would hardly dent Microsoft's leading position with over 60 million consoles that have been shipped. It does not appear that Apple TV can play catch up fast enough.

Rating: 2.7/5 (17 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK