Apple: ecosystem upgrade Benedict Evans Apple has upgraded its iPod family and also iTunes, which +44 (0)7880 786727
[email protected] now includes new social networking features, and revamped Apple TV, now reinvented as a streaming-only Ian Maude +44 (0)7900 698498 device at a fraction of its former price
[email protected] Ben Rumley +44 (0)20 7851 0911 We expect iPod sales volumes to continue to slide despite
[email protected] the update, but estimate that improved ARPU will add 6 September 201o [2009-093] $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 At Apple’s now annual autumn event, this year held on 1 September, the company refreshed its iPod range, embedded social networking features into iTunes and relaunched the Apple TV box at a fraction of its former price. Initially launched in 2006, Apple TV has disappointed to date, but the new redesigned and lower priced offering contains some interesting ideas, gives Apple a platform to build on and renews its commitment to the TV video-on-demand (VOD) market, which has disappointed for a decade but continues to tantalise. iPod refresh Apple has upgraded its iPod line up, with new iterations of the Shuffle, Nano and Touch models. Only the iPod Classic remains unchanged.