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Will the New Apple TV Taste Success?

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Dec. 4 2020, Updated 10:52 a.m. ET

Apple TV

Apple (AAPL) gave a preview of the new Apple TV at an Apple media event in San Francisco on September 9. The new Apple TV is a big change from its earlier versions with a revamped tvOS, a remote with Siri and a focus on casual games.

A core part of Apple’s strategy is offering new and innovative products in the US and global markets that would allow it to stay competitive in the long run. Apple provides the entire end-to-end solution to a user including the hardware like iPads, iPhone, software including iOS, iTunes and online services and digital distribution of content through iTunes Store, App Store, or iBooks Store.

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Apple does not disclose unit sales for its Apple TV, which is a part of the company’s Other Products segment. This segment includes sales from Apple TV, Apple Watch, Beats Electronics, iPod, and Apple-branded third-party accessories. This segment appears to be Apple’s fastest growing-segment with sales of $2.6 billion in 3Q15, a steep rise of 49% from the same quarter last year.

Given this fact, it seems possible that Apple is targeting a younger audience who have moved from Apple’s iPhones and iPads to Apple TV. Apple has tried to innovate the Apple TV with a revamped tvOS, a remote with Siri, and a focus on casual games. In addition to streaming TV shows and movies, Apple TV will also allow users to shop online, go house hunting through apps, and stream music through Apple’s iTunes store.

What does the future hold for Apple TV?

Considering some of the drawbacks of the new Apple TV discussed in earlier part in this series, it seems likely that Apple is testing the market with Apple TV. It may address these shortcomings after the launch of Apple TV in October and go by the number of unit sales of the product.

It remains to be seen whether a user would bite into this Apple, considering the somewhat costly price tag of $149 and ignore Apple TV’s shortcomings.

You can get a diversified exposure to Apple by investing in the PowerShares QQQ Trust Series 1 ETF (QQQ), which holds 13.36% of the stock. QQQ also holds 6.97% of Microsoft (MSFT), 5.01% of Amazon (AMZN), and 4.35% of Google (GOOG).

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