Apple TV sales disappointing

Analyst claims sales are in a slump

10 December 2007 14:29 GMT / By Katie Scott

Sales of Apple TV have been well below predicted expectation for the media streaming set-top box.

Market Research firm Forrester claims that the Apple TV has failed to "catch the imagination" of consumers, revising its prediction from last May that Apple would sell one million of its first generation devices by the end of this year.

Analysts at Forrester point to an "iTunes video revolution that never happened".

"In addition to the 400,000 Apple TV units we estimate Apple has sold thus far, the company will be lucky to sell another 400,000 in the year-end holiday rush, short of our one million estimate", said Forrester analyst James McQuivey.

He added: "Unfortunately, the same lack of interest in iTunes video will mean the iPhone and the iPod touch have less video momentum to ride".

According to its research, Forrester said that nearly half of all adults with online access say that they have heard of the Apple TV, but only 5% of those who feel that they know what it does have either checked out the device in the store or looked it up online to learn more.

McQuivey added that Apple could increase sales by improving the iTunes Store, with the suggestions of bringing back NBC content and offering a movie download rental service top of the list.