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Apple Inc. (NASDAQ:AAPL) has had a rollercoaster of a ride with its Apple TV set-top streamer. It went from pioneering device to “hobby” status, then became a billion dollar business with the potential to have a real impact on AAPL stock.
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The device was virtually abandoned for several years, made a brief comeback in 2015, and had once again fallen seriously behind the competition. But now, an AAPL slip in iTunes video tags is pointing to the release of a 4K Apple TV with high dynamic range (HDR) support.
If so, will AAPL nail it with the new Apple TV and climb out of the set-top streamer basement? Doing so could not only make the device relevant to the company’s bottom line, it would also help to drive iTunes video revenue.
iTunes Rentals Tag Tips Apple’s Hand
AAPL is known for its secrecy, particularly when it comes to new products. Just look at the rumors surrounding the iPhone 8. This is the company’s most important release in years — a product that’s guaranteed to have an immediate impact on AAPL stock when it launches — and just six weeks before its expected unveiling, Apple has said nothing about it. All we really have to go on are spy shots of components reportedly smuggled from iPhone suppliers and some early release protective cases…
With the 4K Apple TV, it appears that AAPL itself has accidentally tipped its hand. MacRumors is reporting multiple instances of readers finding iTunes video rentals with a “4K, HDR” tag showing up in their purchase history. This happened in the U.K. and Canadian iTunes stores.
Those tags point to one thing: a new 4K Apple TV with HDR support is coming. There is no other reason for AAPL to be experimenting with those tags (the current version maxes out at 1080p and doesn’t support HDR).
Dropped the Ball
It’s difficult to picture now, but back in 2012, AAPL owned 56% of the market for video streamers. Even though the Apple TV became a billion dollar business for AAPL in 2013, the company soon fell behind. Roku, Inc. expanded its inexpensive offerings, and both Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc’s (NASDAQ:GOOGL, NASDAQ:GOOG) Google aggressively entered the media streamer market.
AAPL finally released a new Apple TV in 2015. It gained an App Store, the ability to play video games and a Siri voice control remote, but with a starting price of $149, it was more expensive than its predecessor and far more expensive than the competition. And, it lacked 4K video support — something offered by rivals. With 4K TVs going mainstream and both Amazon and Netflix, Inc. (NASDAQ:NFLX) rapidly increasing their 4K video content, the new Apple TV never really caught on.