Apple’s first quarter earnings report was mostly full of good news: the company reported record revenue and increases in sales of iPhones, Macs, and Apple Watches. But one device isn’t pulling its weight. The Apple TV, a streaming box that competes with products like the Roku Ultra and Fire TV, is seeing a decline in sales.
As Business Insider reported, the only real bad news in Apple’s earnings report came in a category marked “others,” a catchall category that covers accessories, dongles, and a couple of devices: the Apple Watch and Apple TV. This category was down 8%, and we know that it wasn’t the fault of the Apple Watch, because Apple claimed record sales and revenue from that device.
So the culprit seems to be the Apple TV, which Apple admitted saw a drop in sales year-over-year. The little device has never quite managed to stake out as much real estate in the streaming box market as Amazon’s Fire TV or Roku’s many devices.
In a lot of ways, Apple still seems to be trying to figure out just how to handle the cord cutting part of their business. They recently unveiled an app called simply “TV,” which aims to put all of your streaming entertainment in one spot. The app launched after the Apple TV did. There’s also Apple’s long-rumored skinny bundle service, which at this point seems to be dead in the water. And then there’s a hint from Apple CEO Tim Cook about potential original content: “We are learning a lot about the original content business and thinking about ways we could play it.”
Apple still has options, and the Apple TV still has a minority share of the streaming box market. We’ll have to wait and see how the company might turn things around.
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